The Changed Legality of Resale Price Maintenance and Pricing Omplications Harvard Case Solution & Analysis

From 1911 to 2007, the minimum resale price maintenance agreements between manufacturers and resellers are illegal under federal antitrust laws. This handicapped manufacturers who seek to exercise control over how their products have been evaluated and promoted through distribution channel. In June 2007, the Supreme Court of the United States-Leegin case, ruled that the bilateral agreements the minimum resale price maintenance will no longer automatically unlawful. On the contrary, they must be legitimate, if the net effect of stimulating competition and illegal only if the net effect is anti-competitive. This solution enables manufacturers to use resale price maintenance to create value for its customers and consumers. However, not all stakeholders, including some national legal systems have adopted Leegin ruling, creating uncertainty about the final blow. Despite this uncertainty, the opportunities created by Leegin are worth exploring and acting on. Since Leegin ruling three years ago, a new landscape for resale pricing service develops. We will discuss this landscape practices for resale price maintenance within their jurisdiction. For many manufacturers, the chance of enjoying Leegin outweigh any potential risks. "Hide
by Surinder Tikoo, Bruce Mather Source: Business Horizons 9 pages. Publication Date: September 15, 2011. Prod. #: BH445-PDF-ENG

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