Leegin designs, makes, and distributes leather goods. Most popular are belts with the brand name Brighton. These

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Leegin designs, makes, and distributes leather goods. Most popular are belts with the brand name "Brighton." These are sold across the country in over 5,000 stores, mostly independent, small boutiques, and specialty stores. Leegin refused to sell to retailers that discounted Brighton goods below its suggested prices. Leegin allowed products not selling well that the retailer did not plan on reordering to be discounted. Leegin told the stores that bought from it: "In this age of mega stores like Macy's.consumers are perplexed by promises of product quality and support of product which we believe is lacking in these large stores. Consumers are further confused by the ever popular sale, sale, sale, etc." The Leegin policy was consistent prices that would allow selected retailers to earn good profits so they would support the Brighton brand.

1. Assuming resale price maintenance to be generally legal, what kind of companies do you think would benefit the most from the practice?
2. This overturned a rule set in a case almost 100 years ago. Should courts overturn old rulings or should they leave it to the legislature to change the law?

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The Legal Environment of Business

ISBN: 978-0538473996

11th Edition

Authors: Roger E Meiners, Al H. Ringleb, Frances L. Edwards

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