Final answer:
The correct answer is True. The test of reasonableness in analyzing potential violations of the Sherman Act determines whether challenged contracts or acts are unreasonably restrictive of competitive conditions. This helps evaluate if actions of corporations limit competition excessively.
Step-by-step explanation:
The statement is true.
The test of reasonableness is used to analyze potential violations of the Sherman Antitrust Act. It determines whether challenged contracts or acts are unreasonably restrictive of competitive conditions. This test evaluates whether the actions of corporations are excessively limiting competition in the market.
For example, if a company signs contracts with suppliers that restrict other competitors from accessing necessary resources at a fair price, it could be considered unreasonably restrictive of competitive conditions. Such actions may violate the Sherman Act and be subject to legal consequences.