The story may be a familiar one. Your company makes a product that it sells it through various retailers or distributors. Over the years, you've worked hard to maintain the product's premium image, encouraged vigorous marketing and customer service by resellers, and maintained the peace between competing retail outlets.
Supreme Court's Leegin Decision Opens Door to Resale Price Controls
In June 2007, the United States Supreme Court revisited the per se ban on resale price maintenance. In a 5-4 opinion, the Court in <i>Leegin Creative Leather Products v. PSKS, Inc.</i>, overruled nearly a century of precedent, and adopted a 'rule of reason' analysis that allows an alleged violator to attempt to justify price controls. As a result, news reports predicted widespread changes in resale price agreements and a decline in competitive discounts, giving the impression that companies are now free to impose price controls with little or no oversight, without fear of legal consequence, regardless of the specific nature of their products. Is this true?
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David C. ReymannThis premium content is locked for LawJournalNewsletters subscribers only
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