MichaelR wrote:

Actually, this was settled in the US Supreme Court in 1919. It's called the
Colgate Doctrine.

The Colgate Doctrine doesn't apply to your original assertion that
"Manufacturers can set minimum sale prices" since to do that would require
an explicit agreement with the dealer and such agreements are illegal. In
general the manufacturer would have the right to terminate a dealer from
getting products in the future if they sold items below the suggested
price. But that doesn't allow them to "set minimum prices" since the
dealer is still free to sell his current inventory at as low a price as
he chooses.

There have also been exceptions to Colgate in cases where the manufacturer
dominates the market. Whether Garmin would fall into that category is
something the courts would have to decide on the basis of the
facts in this particular case.





"Peter" wrote in message
news:yL%bc.182419$_w.1842540@attbi_s53...

MichaelR wrote:


You are half right.
Manufacturers can set _minimum_ sale prices:

http://www.ftc.gov/bc/compguide/question.htm

The above website does not support your assertion. It states:
"If the manufacturer and a dealer entered into an agreement on a resale
price or minimum price, that would be a price-fixing violation. The
agreement could be formal, through a contract, or informal, when the
dealer’s compliance is coerced. However, if the manufacturer has
established a policy that its dealers should not sell below a minimum

price

level, and the dealers have independently decided to follow that policy,
there is no violation."

So a manufacturer coercing a dealer to abide by a minimum sales price
is a violation of price-fixing legislation. But the manufacturer can
suggest a minimum sales price and hope that the dealers abide by it.

If Garmin is telling dealers that they must abide by the minimum price
for the 296 or have their supplies cut off that would constitute
coersion and I expect they would lose in court if Darrel (tvnav) or
other affected dealers decide to fight the policy.

"Will Thompson" wrote in message
...



So why is this? Manufacturers *cannot* set actual selling prices, per
federal law (Sherman Act and related) so it is strange that they try to
impose this barrier.