If a product competes mainly with the products of major foreign companies, is resale price maintenance more

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If a product competes mainly with the products of major foreign companies, is resale price maintenance more or less likely to lessen competition and restrict output than if the competitors were all U.S. firms? Explain.

Leegin Creative Leather Products, Inc., designs, manufactures, and distributes leather goods and accessories. One of its brand names is Brighton. Kay’s Kloset, owned by PSKS, Inc., started purchasing Brighton goods from Leegin in 1995. As part of a resale price maintenance program, Leegin required resellers of Brighton goods to charge customers a minimum price. When Leegin discovered that Kay’s Kloset had been discounting Brighton products by 20 percent, Leegin stopped selling Brighton products to the store. PSKS sued Leegin in federal court, claiming that Leegin had violated antitrust law when it imposed minimum prices. The district court entered a judgment against Leegin in the amount of almost $4 million. The U.S. Court of Appeals for the Fifth Circuit affirmed, and Leegin appealed to the United States Supreme Court.

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Business Law Today The Essentials

ISBN: 978-0324786156

9th Edition

Authors: Roger LeRoy Miller, Gaylord A. Jentz

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