Fair trade refers to the fact that retailers are free to set their price in the absence of resale price maintenance.

Question

Quizplus · Accepted Answer

Fair trade refers to a trade system that aims to provide fair prices to producers and workers, especially in developing countries. It does not refer to retailers' pricing strategies. Resale price maintenance is a practice in which manufacturers set a minimum price at which their products can be sold by retailers, thus restricting the retailer's ability to offer discounts. Fair trade and resale price maintenance are not related concepts.

Fair Trade Refers to the Fact That Retailers Are Free