Legal Question in Business Law in New Hampshire

Price Fixing

A distributor/manufacturer recently told my company they would no longer supply their product to us. Their reason is that we discount the price below their normal retail price. Evidently they have had complaints from other retailers who sell at full retail. My question is it legal to force a business to sell at a certain price? We have no formal agreement with this distributor.

Thank You.


Asked on 10/11/05, 8:04 pm

1 Answer from Attorneys

Lawrence Graves Coolidge & Graves PLLC

Re: Price Fixing

This area of antitrust law is highly fact-specific, so you would have to provide comprehensive details to get a reliable answer. Generally, a supplier has the right to withhold its products from a discounter in order to maintain its desired retail price point (so-called "unilateral refusal to deal"); however, colluding with a third party to maintain a retail price point can give rise to liability.

Best wishes,

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LDWG

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Answered on 10/12/05, 9:40 am


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