Legal Question in Business Law in Illinois

if a manufacturer of lets say "widgets" sells them to retailer "a" and retailer "b". The manufacter sells these "widgets" to retailer "a" for $5 and to retailer "b" for $7 , then retailer "a" sells those "widgets" for $6, cheaper than retailer "b" buys them for-- shouldn't that be illegal, it doesnt create a fair market place as retailer "b" has absolutely no chance of competing with retailer "a" because he cannot buy that product for the price the retailer sells it for.


Asked on 11/26/10, 4:52 pm

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I can say price fixing (setting high or low prices) violates antitrust laws under most circumstances. Free and unfettered competition is favored by the law. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 12/01/10, 5:24 pm


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