Setting of minimum resale prices is a rule of reason violation of Section 1 of the Sherman Act.

Question

Quizplus · Accepted Answer

Setting of minimum resale prices is not always a violation of Section 1 of the Sherman Act. It depends on the circumstances and the impact on competition. In some cases, such as vertical agreements to maintain a brand image through pricing, minimum resale price agreements can be pro-competitive and legal under the rule of reason analysis.

Setting of Minimum Resale Prices Is a Rule of Reason