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Belinda Markets a Popular Jacket That She Sells to Retailers

Question 142

Essay

Belinda markets a popular jacket that she sells to retailers for $80 per jacket.She markets the jackets on a nationwide basis.A competitor introduces to the market in Virginia and North Carolina a similar jacket that is sold to retailers for $70 per jacket.Belinda wants to reduce the price of her jacket in Virginia and North Carolina to only $60 per jacket.She asks your opinion as to whether she can do this,and whether she would have to reduce the price of the jacket in other states as well.Discuss the legal principles involved,and whether Belinda can reduce the price of the jackets to $60 in Virginia and North Carolina.

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