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Leegin Creative Leather Products, Inc. v. PSKS, Inc.

Docket No.: 06-480
Certiorari Granted: Dec 7 2006
Argued: March 26, 2007
Decided: June 28, 2007

Topics:

Antitrust, property rights, resale price maintenance, rule of reason, Sherman Act, stare decisis, Union, vertical price restraints

PartyNames: LEEGIN CREATIVE LEATHER PRODUCTS, INC. v. PSKS, INC., dba KAY’S KLOSET...KAY’S SHOES
Petitioner: Leegin Creative Leather Products, Inc.
Respondent: PSKS, Inc., dba Kay's Kloset...Kay's Shoes

Court Below: United States Court of Appeals for the Fifth Circuit

Leegin Creative Leather Products, Inc.
v.
PSKS, Inc., dba Kay's Kloset...Kay's Shoes
551 U.S. 877 (2007)
Question Presented:

This Court has held that antitrust "per se rules are appropriate only for conduct that . . . would always or almost always tend to restrict competition." Modern economic analysis establishes that vertical minimum resale price maintenance does not meet this condition because the practice often has substantial competition-enhancing effects. The question presented is whether vertical minimum resale price maintenance agreements should be deemed per se illegal under Section 1 of the Sherman Act, or whether they should instead be evaluated under the rule of reason.

Question:

Is it per se illegal under Section 1 of the Sherman Act for a manufacturer to set mandatory minimum prices for its products?

Holding: judgment reversed and remanded
Vote: 5-4
Opinion By:
Read LEEGIN CREATIVE LEATHER PRODUCTS, INC. V. PSKS, INC. opinion (PDF)

Other Resources for Leegin Creative Leather Products, Inc. v. PSKS, Inc.:
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