Can you really call it a rebate if the price goes up.

Started Feb 20, 2011 | Discussions thread
kimvette
Senior MemberPosts: 1,254
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Re: Can you really call it a rebate if the price goes up.
In reply to JimSar, Feb 22, 2011

JimSar wrote:

Can a manufacturer "require" a retailer to a set selling price, i.e., MSRP? I thought there's already a law and precedent against that practice.

The first sale doctrine does not allow for restrictions on whom one may resell a commodity good to, nor set the price. However, the supplier may refuse to sell to a vendor who will not honor a minimum advertised price if they wish. Such action is not considered "price fixing" and unless the manufacturer enjoys a monopoly status there is nothing illegal about it. The vendor may choose to disregard the manufacturer's MAP and the law allows them to do so, but the law also allows the manufacturer to discontinue supplying the vendor.

Since the manufacturer is not agreeing with other manufacturers to set minimum prices throughout the marketplace, there is no antitrust issue or any sort of "price fixing" going on.

(and, did we need yet another thread about this topic?)

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