Why the Minimum Resale Price is the Lowest Price

If you want your out-of-state customers to be most confident that they are getting your lowest price so their shopping is easiest, you should call it a Minimum Resale Price (MRP). That’s because the law calls the lowest price that most often so using any other name makes you less responsible. Small businesses and entrepreneurs, therefore, can create a legal policy using this term saying that the prices they are selling at are their lowest. Businesses benefit from the fact that many customers are attracted to getting the lowest price and many others will buy sooner when offered it. The Minimum Resale Price was originally used by manufacturers to control the prices of their resellers but any offer can have an MRP. The U.S. Supreme Court re-calls it as that in the Leegin vs. PSKS case, using that term more than any other. The case opinion describes historic doubts about vertical price-fixing and more “innovative” methods of commerce that now make it possible, referring to the internet where profits can be lower and more competitive. (more…)