The US Supreme Court overrules the nearly 100-year-old per se prohibition of vertical minimum price restraints finding that they are to be judged by the rule of reason (Leegin Creative)

I. Background After the per se prohibition of non-price vertical restraints and of maximum resale price maintenance have long been abolished by overruling Supreme Court decisions [Continental T.V. v. GTE Sylvania Inc., 433 U.S. 36 (1977) and State Oil v. Kahn, 522 U.S. 3 (1997)], Leegin is the last step in the demise of the per se prohibition of vertical restraints. II. Facts of the case Leegin Creative Leather Products, Inc. (Leegin) is a manufacturer and distributor of leather goods and accessories. PSKS, Inc. (PSKS) is a retailer operating a women's apparel store, which buys from different manufacturers, among them Leegin. Leegin refuses to sell to retailers that discount its goods below suggested prices. It justifies this policy with the need to give its retailers sufficient

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Melanie Schwaderer, The US Supreme Court overrules the nearly 100-year-old per se prohibition of vertical minimum price restraints finding that they are to be judged by the rule of reason (Leegin Creative), 28 June 2007, e-Competitions Bulletin June 2007, Art. N° 22117

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