Supreme Court Overturns Century-Old Precedent

Law360, New York (June 27, 2007, 12:00 AM EDT) -- In a landmark five-to-four decision that overturned nearly a century of precedent, the U.S. Supreme Court ruled Thursday that manufacturers can set minimum price standards for retailers if they encourage competition.

The decision will replace the rule established in the 1911 case Dr. Miles Medical Co. v. Hohn D. Park & Sons Co., which made it illegal per se under the Sherman Antitrust Act for manufacturers to impose vertical price restraints on retailers. In its place, a new “rule of reason” will examine the legality of...
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