Knowledge (XXG)

Unilateral policy

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104:"Colgate policies" are independently adopted and announced by the manufacturer. The manufacturer, without any agreement with the reseller, announces a minimum resale price and refuses to make further sales to any reseller that fails to sell at or above the announced price. There is no contract and the parties do not agree on the price. Aside from suggesting retail prices or having the reseller act as an agent of the manufacturer and sell the goods on consignment, until the 2007 78: (1911), the United States Supreme Court affirmed a lower court's holding that a massive minimum resale price maintenance scheme was unreasonable and thus offended Section 1 of the Sherman Antitrust Act. The decision rested on the assertion that minimum resale price maintenance is indistinguishable in economic effect from naked horizontal price fixing by a cartel. Subsequent decisions characterized Dr Miles as holding that minimum resale price maintenance is unlawful 91:, recognized the manufacturer's right to deal with whomever it wanted, and as importantly, its right to refuse to deal. This distinction allowed manufacturers to announce terms under which they would deal with their resellers and then refuse to deal with those who failed to comply. 101:, stating that, "under Colgate, the manufacturer can announce its re-sale prices in advance and refuse to deal with those who fail to comply, and a distributor is free to acquiesce to the manufacturer's demand in order to avoid termination". 28:") a manufacturer, without any agreement with the reseller, announces a minimum resale price and refuses to make further sales to any reseller that sells below the announced price. Unilateral policy is a form of 32:
that enables a manufacturer to influence the price at which its distributors and dealers resell its products without a formal contract regarding the resale price. The policy was first identified in
68: 39: 106: 61:
in 1890 which banned, "every contract, combination …, or conspiracy, in restraint of trade" price fixing by the manufacturer was held to be illegal. In
97: 110:
decision a Unilateral Policy was the only way that a manufacturer could directly influence a reseller's retail price without subjecting itself to
145: 155: 63: 87: 34: 29: 72: 43: 150: 125: 112: 75: 46: 139: 58: 85:
While vertical price agreements remained taboo, in 1919 the Supreme Court in
82:- that is, without regard to its impact on the marketplace or consumers. 107:
Leegin Creative Leather Products, Inc. v. PSKS, Inc.
95:s progeny in 1984 further built upon this right in 64:Dr. Miles Medical Co. v. John D. Park and Sons 8: 98:Monsanto Co. v. Spray-Rite Service Corp. 26:unilateral minimum retail price policy 7: 88:United States v. Colgate & Co. 35:United States v. Colgate & Co. 14: 1: 116:liability for price fixing. 146:United States antitrust law 172: 156:Anti-competitive practices 30:resale price maintenance 57:Beginning with the 18:unilateral policy 163: 126:US antitrust law 171: 170: 166: 165: 164: 162: 161: 160: 136: 135: 134: 122: 55: 12: 11: 5: 169: 167: 159: 158: 153: 148: 138: 137: 133: 130: 129: 128: 121: 118: 54: 51: 22:colgate policy 13: 10: 9: 6: 4: 3: 2: 168: 157: 154: 152: 149: 147: 144: 143: 141: 131: 127: 124: 123: 119: 117: 115: 114: 109: 108: 102: 100: 99: 94: 90: 89: 83: 81: 77: 74: 70: 66: 65: 60: 52: 50: 49: (1919). 48: 45: 41: 37: 36: 31: 27: 23: 19: 111: 105: 103: 96: 92: 86: 84: 79: 62: 56: 33: 25: 21: 17: 15: 59:Sherman Act 53:Development 140:Categories 120:See also 93:Colgate' 16:Under a 151:Pricing 113:per se 80:per se 24:" or " 132:Notes 71: 42: 20:(or " 73:U.S. 44:U.S. 76:373 69:220 47:300 40:250 142:: 67:, 38:,

Index

resale price maintenance
United States v. Colgate & Co.
250
U.S.
300
Sherman Act
Dr. Miles Medical Co. v. John D. Park and Sons
220
U.S.
373
United States v. Colgate & Co.
Monsanto Co. v. Spray-Rite Service Corp.
Leegin Creative Leather Products, Inc. v. PSKS, Inc.
per se
US antitrust law
Categories
United States antitrust law
Pricing
Anti-competitive practices

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