Distribution Agreements · glossary
A supplier fixing the least its distributor may charge customers, in writing or through pressure. It is a hardcore restriction. Cressby may recommend Tullavane’s rental charges and sale prices, or set a maximum, but never a minimum. Agreement, clause 7.4 · Chapter 4 · see Hardcore restriction, Recommended price
Explained in Chapter 4, Prices, Payment Terms and Resale Price Maintenance, of Distribution Agreements.
Competition law lets a supplier control a lot, such as where its distributor may chase sales (Chapter 3). But it does not let the supplier control what the distributor charges its own customers. Fixing the lowest price a distributor may charge is resale price maintenance. Suppliers are often tempted, because a floor under prices stops a brand looking cheap.Read Chapter 4, Prices, Payment Terms and Resale Price Maintenance →
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