Pads & Pods Corporation requires all distributors of its products to sell the products at specified minimum prices. This resale price maintenance agreement is

Question

Pads & Pods Corporation requires all distributors of its products to sell the products at specified minimum prices. This resale price maintenance agreement is​

Quizplus · Accepted Answer

Resale price maintenance agreements are evaluated under the rule of reason, which requires an assessment of the agreement's pro-competitive and anti-competitive effects. While such agreements can have anti-competitive effects, they can also have pro-competitive benefits, such as promoting competition based on non-price factors or securing adequate distribution services. Therefore, the agreements are not per se illegal but must be evaluated on a case-by-case basis.

Pads & Pods Corporation Requires All Distributors of Its Products