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Topic: Resale price maintenance

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	[No title]
		In many cases, resale price maintenance may have the same effect as the nonprice measures Sylvania removed from the category of per se offenses: they may be highly procompetitive and enhance consumer welfare by stimulating interbrand rivalry.
		Resale price maintenance may be anticompetitive in certain contexts; but abandonment of the per se standard would not require courts, in order to identify those contexts, to engage in the protracted proceedings that the rule of reason is sometimes thought to entail.
		In the case of resale price maintenance, both the economic evidence and the adverse consequences of the opposite course demonstrate that resale price maintenance should not be treated differently from all other vertical arrangements between manufacturers and their distributors.
	www.usdoj.gov /osg/briefs/1982/sg820027.txt (7533 words)

	Resale price maintenance
		Suppliers may try to impose a resale price to maintain brand positioning or to give resellers attractive profit margins.
		However, it would be illegal for the supplier to put pressure on you to charge the listed prices or any other set price (for example, RRP less 10 per cent).
		You, as well as the supplier who agrees with your suggestion, would then be breaking the law, that is, inducing resale price maintenance or a price fix.
	www.accc.gov.au /content/index.phtml/itemId/322982/fromItemId/6129 (302 words)

	Tinkering with Antitrust Law, Congress Threatens Consumers and Competitiveness
		Indeed, resale price maintenance may seem to be just another form of price fixing, which prevents dealers from reducing the prices that they charge to consumers.
		A higher retail price may help the dealer, but it may be of no particular benefit to the manufacturer; it is the wholesale price paid to him by dealers that is important to the manufacturer.
		It is thus very unlikely that a manufacturer would pursue an RPM policy merely to allow dealers to charge higher prices.6 An alternative argument sometimes advanced is that RPM policies are actually disguised cartels among the dealers to increase their own profits.
	www.heritage.org /Research/Economy/IB137.cfm (3499 words)

	Price - Wikipedia, the free encyclopedia
		The concept of price is central to microeconomics where it is one of the most important variables in resource allocation theory (also called price theory).
		Price is also central to marketing where it is one of the four variables in the marketing mix that business people use to develop a marketing plan.
		In Marxian economics, the increasing use of prices as a convenient way to measure the economic or trading value of labor-products is explained historically and anthropologically, in terms of the development of the use of money as universal equivalent in economic exchange.
	en.wikipedia.org /wiki/Price (1522 words)

	Research Paper - The Practice of Resale Price Maintenance in Hong Kong (September 2, 1997)
		RPM is a vertical restriction that exists when suppliers require retailers to sell their products at, or above, a specified price.
		Private anti-competitive practices such as RPM cannot be dealt with by Government through the introduction of specific administrative solutions such as the steps taken to improve competition in the highly regulated banking and telecommunications industries, or in the property industry where the government, as the prime supplier of land, is a major participant.
		It accepted the argument that ending RPM would lead to a reduction in the number of small pharmacies and that patients, who were usually sick and often elderly, would have further to travel to obtain their medicines.
	www2.consumer.org.hk /p253/resale_e.htm (3354 words)

	Brief for the United States as Amicus Curiae Supporting Petitioner : Leegin Creative Leather Products, Inc. v. PSKS, ...
		RPM may ensure sufficient margins and incentives for retailers to engage in beneficial point-of-sale services, because it prevents "free riding" by price-cutting dealers that would otherwise make it unprofitable for retailers to incur the cost of providing those services.
		Although RPM may have anticompetitive effects in a particular case, there is no basis "to predict with confidence that the rule of reason will condemn it" because the practice is invariably or almost invariably anticompetitive and lacking in any redeeming social value.
		By fixing the minimum price at which the good may be sold (and thus guaranteeing the retailer a certain margin over the cost of the good to the retailer), RPM provides retailers with an incentive to expend resources in order to attract additional customers for that product, thereby furthering the manufacturer's competitive goals.
	www.usdoj.gov /atr/cases/f221000/221027.htm (7118 words)

	Resale Price Maintenance and the Character of Resistance in the Conservative Party: 1949-64 Canadian Journal of History ...
		This paper examines the development of Conservative party policy during the 1950s and early 1960s towards resale price maintenance (rpm), the procedure by which companies stipulated the minimum price at which their products could be sold, which ended with the abolition of the practice.
		Price maintenance was considered, by those Conservatives who favoured modernization, to be a significant impediment to the development of an efficient and competitive distributive industry.
		Resale price maintenance (rpm), the system by which individual firms stipulated the minimum price at which their goods could be sold in retail outlets, was abolished by the short-lived government of Sir Alec Douglas-Home in 1964.
	www.findarticles.com /p/articles/mi_qa3686/is_200508/ai_n15745873 (890 words)

	MRP versus MOP
		The MRTP Act not only frowns upon `resale price maintenance', but also does not countenance refusal to supply on the ground that the dealer had the gumption to defy the diktat of the manufacturer as to the resale price.
		If a supplier can insist upon resale price maintenance lest his rights and obligations under patents/trademarks, licensed/assigned or granted to him, are affected, as a corollary, he should also be vested with the concomitant right of refusal to supply to a renegade trader.
		It may be noted that resale price maintenance and refusal to supply are terms which are linked to each other like Siamese twins.
	www.thehindubusinessline.com /2001/06/14/stories/041401a3.htm (732 words)

	Resale price maintenance
		Statement on resale price maintenance, made during the annual general meeting discussion forum by Mrs Sue Sharpe, Director of Professional Standards for the Society and secretary of the Community Pharmacy Action Group [more]
		The guidance says that price promotions, special offers and three-for-two offers are acceptable for general sale list medicines so that pharmacies can compete on equal terms with non-pharmacy outlets which cannot be constrained by professional ethics.
		Simple price promotions are acceptable, as are three-for-two type offers where pack sizes are small and people would legitimately be taking the medicine for an extended period of time, such as antihistamines.
	www.pharmj.com /topics/rpm.html (634 words)

	Resale Price Maintenance – the need for further reform
		RPM is the most common form of vertical price fixing ("VPF"), that is, the practice of a supplier fixing the price at which a party lower in its distribution chain can sell the goods or services that it supplies.
		The Hilmer Committee received submissions arguing that the current prohibition on RPM should be relaxed either by subjecting it to a competition test or by permitting authorisation or notification and that the prohibition should be extended to services.
		While the reforms to RPM brought about by the CPRA as a result of the Hilmer Committee inquiry were a positive step toward capturing conduct which had previously escaped the Act's ambit, further reform is still needed to capture other forms of vertical price fixing.
	www.julieclarke.info /publications/2001rpm.htm (6923 words)

	Vertical Relations Antitrust Laws
		Although most nonprice vertical restrictions and restrictions on the maximum price are subject to a rule of reason, vertical restrictions on minimum prices are per se illegal.
		That is, the courts consider the facts of the case to determine whether a particular nonprice vertical restriction or maximum price restriction is harmful, but they view any vertical restriction on minimum prices as illegal and do not consider any mitigating circumstances or offsetting benefits.
		In the early 1950s, resale price maintenance laws or fair trade laws were enforced in all states except Alaska, Missouri, Texas, and Vermont.
	wps.aw.com /aw_carltonper_modernio_4/0,9313,1424996-content,00.html (755 words)

	Anti-Competitive Agreements
		Price fixing is often considered the worst form of anti-competitive conduct because of its blatant nature.
		If the product for which the price is fixed is a product like raw leather, then it is likely that all of the by products of the leather, such as handbags, shoes or sandals, would be priced much higher than they should.
		Where a supplier that sells its products to another business for resale attempts to dictate to the business reselling the product, the price at which the goods should be sold, this is resale price maintenance.
	www.ftc.gov.bb /html/news/anticompetitive_agreements_article.htm (671 words)

	Distribution and Antitrust: The Setting of Resale Prices by Manufacturers - Law Firm Kupelian Ormond & Magy, P.C. ... (Site not responding. Last check: 2007-09-17)
		Sometimes, however, the suppliers want their distributors to avoid charging more than the recommended price, referred to as "maximum resale price maintenance." Both types have potentially serious legal consequences and should be undertaken by the supplier only after careful evaluation of the legal risks.
		The risk to a supplier for price maintenance is even more significant if it is, or may be alleged to be, a monopolist.
		Most resale price maintenance cases arise in the context of the termination of a dealer by a supplier because the dealer was cutting its resale prices below those stipulated by the supplier.
	www.kompc.com /CM/Articles/Articles19.asp (1322 words)

	California Retail Liquor Dealers Assn. v. Midcal Aluminum, Inc., 445 U.S. 97 (1980) - U.S. Supreme Court - (Site not responding. Last check: 2007-09-17)
		If a producer has not set prices through a fair trade contract, wholesalers must post a resale price schedule and are prohibited from selling wine to a retailer at other than the price set in a price schedule or fair trade contract.
		California's wine pricing system constitutes resale price maintenance in violation of the Sherman Act, since the wine producer holds the power to prevent price competition by dictating the prices charged by wholesalers.
		That evaluation of the resale price maintenance system for wine is reasonable, and is supported by the evidence cited by the State Supreme Court in Rice.
	www.vlex.us /generic/dispatch.asp?vid=1.19980809.3 (5213 words)

	Restrictions in the Resale of Goods (Site not responding. Last check: 2007-09-17)
		Resale price maintenance involves the direct or indirect requirement by a manufacturer that its distributor or dealer resell the goods at a minimum set price or price level.
		The issue of how prices are established is particularly important in the area of antitrust law.
		Consequently, if you are considering any arrangement that may directly or indirectly affect the price of which your products or other products are sold including, in particular, any arrangement that may be construed as resale price maintenance or price fixing with competitors, you should first consult an attorney.
	www.smartagreements.com /bltopics/Bltopi13.html (297 words)

	FindLaw for Legal Professionals - Case Law, Federal and State Resources, Forms, and Code
		If a producer has not set prices through a fair trade contract, wholesalers must post a resale price schedule and are prohibited from selling wine to a retailer at other than the price set in a price schedule or fair trade contract.
		[445 U.S. prices are established by the producers according to their own economic interests, without regard to any actual or potential anticompetitive effect; the state's role is restricted to enforcing the prices specified by the producers.
		That evaluation of the resale price maintenance system for wine is reasonable, and is supported by the evidence cited by the State Supreme Court in Rice.
	caselaw.lp.findlaw.com /scripts/getcase.pl?navby=case&court=us&vol=445&invol=97 (5347 words)

	Blake Dawson Waldron: Competition and Consumer Protection
		A statement of a recommended resale price is permitted, but the prices stated must simply be recommendations or suggestions and must not be enforced as minimum prices.
		The price may be stated to be within a range of prices or an approximate price or it may be specified by reference to some standard, formula or method.
		That is, the supplier can impose a maximum resale price on its customer (to stop the customer charging too much), but the supplier must not impose a minimum resale price (to stop the customer from discounting).
	www.bdw.com.au /areas/tradepractices/tpa-16.htm (471 words)

	[No title]
		RPM is designed to limit intrabrand price competition, but has no obvious implication for interbrand competition.
		RPM guards against retail free riding because it "creates property rights in the information services provided by the dealers who carry their products" [David Boyd, "From 'Mom and Pop' to Wal-Mart: The Impact of the Consumer Goods Pricing Act of 1975 on the Retail Sector in the U.S." Journal of Economic Issues, March 1997:223-231].
		RPM illegal once again and set the stage for the ascendance of Wal-Mart, Target, and the other retail superstores.
	www.clt.astate.edu /crbrown/rpm1.htm (722 words)

	Resale price maintenance as a private contract enforcement mechanism: the special services case. \| Sales from ...
		Resale price maintenance as a private contract enforcement mechanism: the special services case.
		Given that the retail price floor established by RPM affords an attractive margin over the wholesale price, thereby enabling retailers to recoup the costs associated with the added resources required in their undertaking, an optimal amount of the special services will be forthcoming.
		Recourse to a coercive pricing restraint is predicated on the existence of retailers who do not provide the special services but reap the profits generated from sales made to consumers who were informed by rivals.
	www.allbusiness.com /sales/450974-1.html (723 words)

	LEXIS®-NEXIS® Academic Universe - Document
		Instead, Populists have employed price theory to inform their own normative premises, concluding that the Sherman Act was designed to preserve a competitive process free from the influence of coercion, defined as the exercise of market power.
		Given the equation of price theory with perfect competition, these critiques appeared devastating to any argument that price theory - which Chicagoans claimed as the foundation of their analysis - is a useful tool for evaluating the causes or origins of trade restraints.
		R.p.m., like vertical market division, is the means by which the manufacturer induces reseller provision of [services] by making sure that the reseller can recover the [services'] cost.
	sp.uconn.edu /~langlois/E382/Meese.html (18970 words)

	The Jamaica Fair Trading Commission
		Maintenance of minimum resale prices by other means.
		(a) any price notified to the dealer or otherwise published by or on behalf of a supplier of the goods in question (whether lawfully or not) as the price or minimum price which is to be charged on or is recommended as appropriate for a sale of that description; or
		(b) any price prescribed or purporting to be prescribed for the purpose by an agreement between the dealer and any such supplier.
	www.jftc.com /TheFCA/theact/Theact-4.htm (1455 words)

	SSRN-Resale Price Maintenance by Gary Hewitt
		This publication (of 169 pages) represents the proceedings of a roundtable on resale price maintenance held at the OECD in February 1997.
		The proceedings includes a background paper on resale price maintenance prepared by the OECD Secretariat and submissions from 16 countries describing how resale price maintenance is addressed in each country.
		maintenance for collusion and the legal issues surrounding enforcement of prohibitions against resale price maintenance.
	papers.ssrn.com /sol3/papers.cfm?abstract_id=141064 (228 words)

	Resale price maintenance
		Statement on resale price maintenance, made during the annual general meeting discussion forum by Mrs Sue Sharpe, Director of Professional Standards for the Society and secretary of the Community Pharmacy Action Group [more]
		The guidance says that price promotions, special offers and three-for-two offers are acceptable for general sale list medicines so that pharmacies can compete on equal terms with non-pharmacy outlets which cannot be constrained by professional ethics.
		Simple price promotions are acceptable, as are three-for-two type offers where pack sizes are small and people would legitimately be taking the medicine for an extended period of time, such as antihistamines.
	www.pjonline.com /topics/rpm.html (634 words)

	Venable LLP - Publications
		Resale price maintenance is also known as vertical price fixing.
		Price-fixing is illegal whether it involves horizontal competitors discussing the price they will charge, as was the case in the Archer-Daniels-Midland case, or a manufacturer setting the minimum resale price at which its dealers may sell its product.
		Permissible Means to Control Downstream Pricing – Although true vertical resale price maintenance is typically per se illegal, there are several factual scenarios under which a supplier may be able to exercise some degree of control over the pricing of its products without violating the antitrust laws.
	www.venable.com /publications.cfm?action=view&publication_id=1189&publication_type_id=2 (1203 words)

	Vertical Restraints Enforcement at the FTC
		Consequently, any business justification offered in support of a resale maintenance program must show not only why the program was necessary, but also why it could not be adequately handled unilaterally.
		While most of my discussion has turned on unlawful vertical price agreements, the Commission is quite concerned about vertical restraints that have their origins in concerted horizontal action, whether at the dealer or manufacturer level.
		Of particular interest will be vertical price restraints inspired by collusion among horizontal competitors, be it at the dealership level or the manufacturer level.
	www.ftc.gov /speeches/varney/varnmg.htm (1651 words)

	Statement of Pitofsky, Steiger and Varney
		have held such arrangements unlawful where adherence to a suggested price was the quid pro quo for the financial inducements.
		That view is inconsistent with the Supreme Court's view that resale price maintenance continues to be illegal per se and we reject the idea that the Supreme Court can be overruled by scholarly contributions to economic journals.
		The complaint further alleges that the wholesale prices in the agreements were set at a level equal to the specified minimum resale prices, and because a dealer received no rebate on sales below the specified prices, those sales were made at a loss to the dealer.
	www.ftc.gov /os/1997/05/pitovsky.htm (2065 words)

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