Vertical price-fixing

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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).

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]

References

  1. ↑ Leegin Creative Leather Prods. v. PSKS, Inc., 2007 U.S. LEXIS 8668 (2007).
  2. ↑ State Oil Co. v. Khan, 522 U.S. 3, 118 S. Ct. 275 (1997), overruling Albrecht v. Herald Co., 390 U.S. 145 (1968).