Difference between revisions of "Vertical price-fixing"
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(New page: Vertical price-fixing consists of a manufacturer or wholesaler setting a minimum price for its goods to be sold by a retailer. This is also known as "resale price maintenance" (RPM). Thi...) |
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| − | Vertical price-fixing consists of a manufacturer or wholesaler setting a minimum price for its goods to be sold by a retailer. This is also known as "resale price maintenance" (RPM). | + | Vertical price-fixing consists of a manufacturer or wholesaler setting a minimum price for its goods to be sold by a retailer. This is also known as "[[resale price maintenance]]" (RPM). |
| − | This practice was automatically illegal until June 28, 2007, when the [[U.S. Supreme Court]] said that a manufacturer or wholesaler may be able to justice its imposition of a minimum resale price.<ref>''Leegin Creative Leather Prods. v. PSKS, Inc.'', 2007 U.S. LEXIS 8668 (2007).</ref> | + | This practice was automatically ("per se") illegal until June 28, 2007, when the [[U.S. Supreme Court]] said that a manufacturer or wholesaler may be able to justice its imposition of a minimum resale price.<ref>''Leegin Creative Leather Prods. v. PSKS, Inc.'', 2007 U.S. LEXIS 8668 (2007).</ref> |
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| + | A decade earlier the [[U.S. Supreme Court]] legalized, if justification is shown, the practice of vertical price-fixing to establish a ''maximum'' resale price by retailers.<ref>''State Oil Co. v. Khan'', 522 U.S. 3, 118 S. Ct. 275 (1997), ''overruling'' ''Albrecht v. Herald Co.'', 390 U.S. 145 (1968).</ref> | ||
== Reference == | == Reference == | ||
Revision as of 00:56, July 5, 2007
Vertical price-fixing consists of a manufacturer or wholesaler setting a minimum price for its goods to be sold by a retailer. This is also known as "resale price maintenance" (RPM).
This practice was automatically ("per se") illegal until June 28, 2007, when the U.S. Supreme Court said that a manufacturer or wholesaler may be able to justice its imposition of a minimum resale price.[1]
A decade earlier the U.S. Supreme Court legalized, if justification is shown, the practice of vertical price-fixing to establish a maximum resale price by retailers.[2]
Reference
[[category:economics]