Asked by Francesca Kivitt on Jun 16, 2024
Verified
If the legitimate benefits outweigh the anticompetitive effects of a resale price maintenance agreement, the agreement may be held lawful.
Resale Price Maintenance
A practice where a manufacturer or wholesaler controls the retail price at which products are sold by retailers, often to maintain brand image or prevent price wars.
Anticompetitive Effects
Refer to actions or outcomes that reduce competition in a market, leading to less consumer choice and possibly higher prices.
Lawful
Conforming to, permitted by, or recognized by law and regulations.
- Comprehend the role of the rule of reason and per se violations in antitrust law analysis.
Verified Answer
JR
JivithaRao RamaRaoJun 22, 2024
Final Answer :
True
Explanation :
Under U.S. antitrust law, specifically the rule of reason analysis, if the procompetitive benefits or legitimate benefits of a resale price maintenance agreement outweigh its anticompetitive effects, the agreement can be considered lawful. This approach allows for a more nuanced evaluation of the agreement's impact on market competition.
Learning Objectives
- Comprehend the role of the rule of reason and per se violations in antitrust law analysis.