Supreme Court Case Affects Virgin Islands Businesses
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Yesterday, in its last business decision of the term, the Supreme Court overruled a nearly century-old rule treating resale price maintenance agreements as per se violations of the antitrust laws. In Leegin Creative Leather Products, Inc., v. PSKS, Inc., a 5-4 decision written by Justice Kennedy, the Court ruled that minimum resale price maintenance agreements—agreements between manufacturers and distributors to resell a product at or above a set price—will now be examined under the “rule of reason,” a method of analysis that weighs procompetitive benefits against anticompetitive effects. In reaching this result, the Court expressly overruled its 1911 decision in Dr. Miles Medical Co. v. John D. Park & Sons. "This new ruling could have a tremendous impact on Virgin Islands businesses particularly in the liquor and cosmetics industry." Tom Bolt, Managing Attorney at Tom Bolt & Associates, P.C. noted. "Many manufacturers have controlled enforced strict pricing of products in the liquor and cosmetics that are widely sold in the United States Virgin Islands and has been the subject to a subtantial amount of litigation. With the Leegin decision, these pricing controls will need to be reviewed." |
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