QUESTION

If two companies agree not to sell a product for more than 20 dollars, have they broken any laws

Asked on Jul 17th, 2012 on Business Law - Michigan
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1 ANSWER

Litigation Attorney serving Greenwich, CT
Partner at Hilary B. Miller
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The answer is "it depends." As a general matter, antitrust laws prohibit certain agreements on price between competitors. However, the purpose of such laws is to promote competition, and an agreement on a maximum price (rather than a minimum price) is generally pro-competition. Also, it matters where the two companies are in the supply chain. Generally, resale price maintenance agreements are permissible.
Answered on Jul 17th, 2012 at 7:56 AM

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