Is resale price maintenance per se illegal?

In both circumstances, the conduct is per se illegal. However, the CCA allows a business to obtain legal protection to engage in resale price maintenance conduct if it can satisfy the ACCC that the public benefits arising out of the conduct would outweigh any public detriment.

Is resale price maintenance legal?

First, although resale price maintenance is no longer illegal per se under federal law, neither is it automatically legal. Manufacturers can easily be drawn into costly and drawn-out litigation, with uncertain prospects for success, by disgruntled consumers seeking to prove such agreements unreasonable.

What is resale price maintenance policy?

Resale price maintenance is a practice in which a manufacturer fixes the price for the resale of a brand product and the retailer is not allowed to sell it at a lower price. Manufacturers use resale price maintenance to more directly prevent inter-retailer price competition.

What is the resale price method?

The resale price method is a traditional transaction method. This means its application looks to transactions between unrelated parties as a means to determine an arm’s length price for the intercompany controlled transaction under review.

Is retail price maintenance illegal in the US?

Thus, from the 1975 enactment of the Consumer Goods Pricing Act to the 2007 Leegin decision, resale price maintenance was again no longer legal in the United States.

Is vertical price fixing illegal?

Direct agreements to maintain resale prices are per se illegal in the United States and subject to “hard-core restriction” in Europe. …

What is the purpose of resale price maintenance?

If a reseller refuses to maintain prices, either openly or covertly (see grey market), the manufacturer may stop doing business with it. Resale price maintenance prevents resellers from competing too fiercely on price, especially with regard to fungible goods.

How do you use the resale price method?

The resale price method is a transfer pricing method based on the price at which a product that has been purchased from an associated enterprise is resold to an independent enterprise. The resale price is reduced by the resale price margin.

What is resale minus method?

The Resale Price Method is also known as the “Resale Minus Method.” As a starting position, it takes the price at which an associated enterprise sells a product to a third party. After this, the costs associated with the purchase of the product, like custom duties, are deducted.

Is there a market for reselling ebooks?

There are already disputes over digital copyright for ReDigi, a site for reselling music. There’s great potential in the resale market for eBooks, but it’s going to take coordination between producers and consumers within clear digital copyright law to establish a healthy eBook resale market.

Can You resell ebooks with a product license?

Get instant download access on the latest eBooks with resale rights license. The attached product license means you can resell the ebook on your own online store and keep all the profits. …

Why does the price of an ebook decrease?

In the used book market, the price of a book decreases with the degrading condition of the book. eBooks don’t degrade. They’re always in perfect condition. Why would anyone buy a new eBook when they could get the same product for less money?