Resale price maintenance may be justified if

Question

Quizplus · Accepted Answer

Resale price maintenance would be justified if a manufacturer wishes to ensure its retailers have knowledgeable sales staff to advise consumers. This could potentially increase the perceived value of the product and result in higher sales. However, ensuring retailers pay a high price or do not compete with each other would be anticompetitive and potentially violate antitrust laws. A product with a long life, such as cars, may not necessarily justify resale price maintenance.

Resale Price Maintenance May Be Justified If