Supreme Court Holds Minimum Resale Price Maintenance No Longer Per Se Illegal


Breaking Developments In Business Law

After 96 years, a venerable legal precedent has been overruled. On June 28, 2007, the Supreme Court directly overruled the rule established in 1911 in a case known as Dr. Miles, which made resale price maintenance almost automatically illegal. In Leegin Creative Leather Products, Inc. v. Kay’s Kloset, a narrow majority of the Court held that the general standard of antitrust liability, the “rule of reason,” which is evaluated on a factual case-by-case basis, applies to such cases.

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