Questioning The Legality Of Minimum RPM Agreements
February 23, 2011, 2:49 PM EST
Law360, New York (February 23, 2011, 2:49 PM EST) -- Although it used to be a well-settled area of the law, manufacturers now cannot be sure whether the law allows them to require their distributors and retailers to adhere to minimum resale prices. For decades, the setting of maximum or minimum prices to be charged by resellers — known as resale price maintenance (RPM) or vertical price-fixing — was illegal per se.
The clear rules prohibiting RPM no longer exist, however. In State Oil Co. v. Kahn, the Supreme Court unanimously overruled the rule that maximum...