Illegal Resale Price Maintenance example essay topic
204 words
What is price fixing? Price fixing occurs when sellers of the same product or service agree to set actual prices, establish limits on prices or discounts, or fix price-related terms of sale. For example, if several appliance manufacturers at a trade association meeting agree not to allow their prices to go below a certain minimum, they are engaging in illegal price fixing. This conspiracy hurts appliance dealers because they have to pay more to the manufacturers for their products; it hurts consumers because the appliance dealers may raise retail prices. What is resale price maintenance? Illegal resale price maintenance occurs when a buyer agrees not to sell a product at a different price than the price dictated by the seller.
For example, if a retailer of X-brand typewriters agrees with the manufacturer of X-brand that the typewriters will be sold at retail for $350, the retailer and manufacturer have engaged in unlawful resale price maintenance. Illegal resale price maintenance hurts retail businesses who want to increase their sales by lowering their prices, and it hurts consumers because they can't shop among retail stores for the best deal. What is price fixing? What is price fixing?
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