Managers and the Legal Environment 7th Edition by David Madsen, Constance Bagley

Exercise 9

Leegin Creative Leather Products, Inc. is a manufacturer of leather apparel. In order to focus its brand on quality, Leegin refused to sell its products to retailers who intended to sell the products below Leegin's suggested retail prices. Five years after establishing this policy, Leegin discovered that Kay's Kloset was selling its products below the recommended prices. When Kay's refused to comply with Leegin's request to raise prices, Leegin stopped shipping its products to Kay's. PSKS, Inc., Kay's parent company, sued Leegin, claiming violation of antitrust laws. What facts would each party have to marshal to prove its case? What result? [PSKS, Inc. v. Leegin Creative Leather Products, Inc., 615 F.3d 412 (5th Cir. 2010).]