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Article: U.S. Supreme Court changes course on minimum resale price maintenance: franchise companies must exercise care in adopting minimum retail price maintenance policies under Leegin.(FW FOCUS: LEGAL)
- Article from:
- Franchising World
- Article date:
- November 1, 2007
- Author:
CopyrightCOPYRIGHT 2007 International Franchise Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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On June 28, the Supreme Court of the United States issued a landmark decision for anyone involved in the distribution of products expressly overruling nearly a century-old precedent holding that it was per se unlawful for manufacturers and wholesalers to require retailers not to sell their products below a specified price (a practice referred to as "vertical resale price maintenance," or "RPM"). In Leegin Creative Leather Products, Inc. v. PSKS, Inc., the court held that manufacturers and wholesalers can engage in RPM practices so long as their minimum prices satisfy the "rule of reason." While this was generally seen as good news for the ...