Legal Question in Business Law in Oregon

Sherman Antitrust Act

Quick question:

Say a retailer buys an item (or items) from a distributor at wholesale cost, and then sells the items to customers at the wholesale price, rather than the 'suggested selling price'.

Then the distributor contacts the retail buyer and tells them that they are ending all accounts with them because they are not selling items at the SRP that the distributor has set.

Is this a violation of the Sherman Antitrust Act? Is there anything legally that the retail buyer can do to comat this? Can the manufacturer/distributor legally do anything other than SUGGEST a retail price?


Asked on 6/25/07, 1:44 am

1 Answer from Attorneys
Johm Smith tom's

Re: Sherman Antitrust Act

Dumping the manufacturer's product on the retail market for wholesale prices will harm all retailers of that product; so the distributor can refuse to sell to you because they don't want you to become the only buyer and all the other retailers will stop selling the product if they can't move their inventory for a profit.

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Answered on 6/25/07, 9:51 am


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