Bush Scandals List

204. SCOTUS: Leegin Creative Leather Products, Inc. v. PSKS, Inc. (price fixing OK’ed)

On June 28, 2007, SCOTUS decided 5-4 in Leegin Creative Leather Products, Inc. v. PSKS, Inc., DBA Kay’s Kloset . . . Kay’s Shoes that a manufacturer/distributor can fix the minimum price at which its goods can be sold by a retailer. The theory championed by Robert Bork among others is that by giving a manufacturer/distributor more control of its brand (including its price) it can better protect its brand. Putting it another way, by reducing competition within a brand, competition can be encouraged between brands. Such an approach may have some validity in high end niche markets for limited periods of time, but the key here is that it only may have a beneficial effect (albeit a highly restricted one) not that it will have one. Under such circumstances, is a potential, ephemeral advantage really worth undermining the Sherman Anti-Trust Act with its well understood and well accepted ban on price fixing? The current hyper-conservative (and extremely activist) Court thinks so. Once again, so much for stare decisis.

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