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PhilEllis:Actually, the Supreme Court in the famous "colgate" (this ruling is the basis for the so-called "colgate rights" that all manufacturers who exercise price controls proudly trumpet) case says the manufacturer CAN establish a minimum retail price, providing they do so as a "unilateral" business policy and fairly terminate dealers who violate the policy. What they CANNOT do is enter into an AGREEMENT with the dealer to regulate the actual price. Important Note: Oral arguments will be heard by the Supreme Court on Leegin v PSKS on March 26 of this year. The question before the Court is .........."will minimum retail price agreements continue to be per se illegal or should each instance be judged by the increasingly popular "rule of reason" established by the court." I will make a different post on this issue later today if time permits.
Phil Ellis
Here's a link to the above referrenced case: (I think) Leegin v PSKS