Tuesday, March 27, 2007

The Leegin Case: Resale Price Maintenance

Here's my view on the Leegin case. Minimum prices through resale price maintenance should be subject to the rule of reason, rather than being considered per se illegal, because manufacturers can set whatever prices they choose if they establish their own distribution network. It doesn't make sense to allow the equivalent of RPM through one distribution arrangement but prohibit it through another.

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