The 2007 Leegin Decision On Resale Price Maintenance and Its Implications For Firms' Distribution Strategies

Abstract

With its Leegin decision in June 2007, the U.S. Supreme Court adopted a
much more permissive judicial attitude toward businesses' use of vertical price restraints
than had been the case for almost a century. In most instances, manufacturers
will now be able to use minimum resale price maintenance when dealing with
retailers without violating federal antitrust laws. This should increase the efficiency
of product distribution. Some firms are unlikely to be able to take full advantage of
these more efficient distribution methods, however, because the antitrust laws of
some individual states are likely to conflict with the new federal rules.