Headsets: "Minimum Advertised Price"

Aloft wrote:

Now, what this suggests to me is that it IS legal to coerce a dealer into
compliance under threat of being dropped as a dealer.

Actually not. The text you quoted says "If TimeCo got you to agree to maintain the
suggested retail price, it would be illegal.", so they can't legally coerce you by
threatening to drop you as a dealer. They *can* drop you as a dealer, but they can't
threaten to do so.

George Patterson
This marriage is off to a shaky start. The groom just asked the band to
play "Your cheatin' heart", and the bride just requested "Don't come home
a'drinkin' with lovin' on your mind".

On Fri, 09 Apr 2004 11:40:01 GMT, "Aloft" wrote:

Now, what this suggests to me is that it IS legal to coerce a dealer into
compliance under threat of being dropped as a dealer. HOW this isn't
anti-competitive, God only knows.

I am as amazed as you, especially since it would only work in cases
where the manufacturer has a real advantage over his competitors, as
in name recognition or share of the market.

The difference between this and the Minimum Retail Price of the 1950s
appears to be merely that in the former case, the dealer who cut
prices had actually broken the law, and there could be penalties
assessed against him.

Happily the New Price Fixing doesn't usually work, because
manufacturers generally needs Wal Mart more than WM needs them.

all the best -- Dan Ford
email: (put Cubdriver in subject line)

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