According to the ruling, resale price maintenance is generally illegal " per se ", but if a supplier merely says it will not deal with resellers that charge less than the supplier's stipulated price, the supplier need not deal with such a retailer.
32.
So-called intrabrand restraints such as resale price maintenance govern products made by a particular manufacturer, while interbrand restraints regulate a dealer s or manufacturer s relationship with its trading partner s rivals ( e . g ., " English clauses " ).
33.
The repeal of the resale price maintenance sanctioning law in 1980 meant that chain discounters such as Wal-Mart, KMart could set and change prices at will, in a more consumer-friendly environment where the customer can examine the goods and confirm availability before approaching sales staff.
34.
:( b ) There is no basis for disagreeing with the view of the California courts that the asserted state interests behind the resale price maintenance system of promoting temperance and protecting small retailers are less substantial than the national policy in favor of competition.
35.
It should not be confused with " Dunlop Pneumatic Tyre Co Ltd v Selfridge & Co Ltd ", which held that the same resale price maintenance practice was unenforceable against a third party reseller as a matter of the English rule of privity of contract.
36.
In 1960, Lester G . Telser, an economist at the University of Chicago, argued that manufacturers could employ minimum resale price maintenance as a tool to ensure that dealers engaged in the desired promotion of a manufacturer's product through local advertising, product demonstrations, and the like.
37.
Others contend that minimum resale price maintenance, for instance, overcomes a failure in the market for distributional services by ensuring that distributors who invest in promoting the manufacturer's product are able to recoup the additional costs of such promotion in the price that they charge consumers.
38.
But some experts criticized Baxter for refusing to challenge vertical mergers _ mergers between companies and their suppliers or distributors _ and so-called vertical restraints like resale price maintenance _ the practice of dictating a price below which manufacturers would not allow wholesalers or retailers to charge.
39.
In " Dr . Miles Medical Co . v . John D . Park and Sons ",, the United States Supreme Court affirmed a lower court's holding that a massive minimum resale price maintenance scheme was unreasonable and thus offended Section 1 of the Sherman Antitrust Act.
40.
In 1955, the Monopolies and Mergers Commission's report " Collective Discrimination-A Report on Exclusive Dealing, Aggregated Rebates and Other Discriminatory Trade Practices " recommended that resale price maintenance, when collectively enforced by manufacturers should be made illegal, but individual manufacturers should be allowed to continue the practice.
