Anti-competitive biz practice?

Dennis Kibbe dennisk at linuxquestions.net
Thu Nov 24 13:46:53 MST 2005


On Thursday 24 November 2005 02:39, Dragos Neagu wrote:
> > I remember reading somewhere you are not allowed to sell something below
> > cost or you can be sued bu gov't

The dealer is free to set his own price, at least, in the industries I've 
worked in.  If this were not the case we'd actually be paying for the our 
cellphones instead of getting them "free" with a service contract.

What a manufacturer can do is set a Minimum Advertised Price (MAP) on a 
product.  This is why you see "call for lowest price" in many magazine ads in 
place of a price, the dealer actually has the product priced below the MAP.

Dennisk


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