From 1911-2007, minimum resale price maintenance agreements between the resellers and manufacturers were not legal under federal antitrust law. This handicapped manufacturing companies which sought to exert control over how their products were priced and promoted via the distribution channel. In the month of June 2007, the United States Supreme Court-via the Leegin case-ruled that bilateral minimum resale price maintenance agreements would no longer be automatically illegal. Rather, they would be legal if their net impact is pro-competitive, and illegal only if the net impact is anti-competitive.
This opinion empowers producers to use resale price maintenance to produce value for consumers and their customers. Nevertheless, not all stakeholders-including some state legal systems-have embraced the Leegin ruling, therefore creating uncertainty regarding its final impact. In spite of this doubt, the chances created by Leegin are worth exploring and acting upon. Since the Leegin opinion 3 years ago, a new landscape for resale pricing maintenance has been evolving. We discuss the concerns as well as this landscape for using resale price maintenance within its ambit. For many manufacturing companies, any possible hazards are outweighed by the opportunity for gaining from Leegin.
The Changed Legality of Resale Price Maintenance and Pricing Implications case study solution
PUBLICATION DATE: September 15, 2011 PRODUCT #: BH445-PDF-ENG
This is just an excerpt. This case is about SALES & MARKETING
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