Ruling allowing price setting to be challenged in court
This WSJ article relates to how brands/vendors/distributors may uphold MSPR/MAP.
By JESS BRAVIN And THOMAS CATAN
Three years after the Supreme Court authorized manufacturers to set prices at retailers, the Dallas boutique that lost the landmark ruling is asking the justices to take another look.
In an appeal filed Monday, Kay's Kloset contends lower courts have gone too far in applying the 2007 decision, reading it as giving manufacturers carte blanche to fix prices rather than analyzing each pricing agreement for itsanticompetitive impact.
Supreme Court losers like Kay's Kloset—which went out of business after lower courts dismissed its claim against the Brighton Inc. accessories line—rarely get a second glance from the justices. But the boutique has enlisted a prominent advocate, Einer Elhauge, a Harvard law professor who says he is so concerned with the lower court decisions that he took the case pro bono.
Consumer advocates condemned the 2007 ruling, which split 5-4 along the Supreme Court's conservative-liberal divide, as sure to drive up prices. Mr. Elhauge defends the high court's decision, but he says that the lower courts took it too far, depriving retailers of the chance to challenge manufacturers.