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The US Supreme Court finds a genuine agency relationship between a manufacturer and its distributors focusing on the form of consignment contracts and the parties’ actual practices (General Electric)

Introduction Under the U.S. antitrust laws a manufacturer is free to set the prices at which it sells its own goods and is free to use intermediaries to facilitate the sales. When intermediaries come into the picture, however, one of the antitrust issues that may arise is whether, on the one hand, the manufacture has parted with the ownership of the goods, i.e., a sale to the middleman took place, and thus the manufacturer became restricted in its ability to set the resale prices, or, on the other hand, the manufacturer remains the owner of the goods under a bona fide consignment agreement and thus remains free to set the prices at which its agent may sell the consigned goods. There are two seminal antitrust cases in the area of consignments — United States v. General Electric Co.

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  • United First Partners (New York)

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Anna M. Pavlik, The US Supreme Court finds a genuine agency relationship between a manufacturer and its distributors focusing on the form of consignment contracts and the parties’ actual practices (General Electric), 23 November 1926, e-Competitions 1964, Art. N° 52682

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