This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
North Carolina Contract between Manufacturer and Distributor Regarding Minimum Advertised Price
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How to fill out Contract Between Manufacturer And Distributor Regarding Minimum Advertised Price?
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FAQ
This is where Minimum Advertised Pricing (MAP) policies come in. But what is a MAP pricing policy, exactly? Highlights. MAP policies are agreements between manufacturers and distributors on the minimum price a product can be sold at. These policies benefit all parties, from manufacturers to distributors and retailers.
IMAP stands for Internet Minimum Advertised Price. It is a MAP policy that brands draft specifically for products sold online.
Generally, if you sell in big volume it might be a good idea to go below the manufacturer's RRP. Be wary, though that some manufacturers and distributors look down on stores that do so because the pricing might be important for their brand image.
A supplier can, however, issue non-binding RRPs for its products or impose maximum prices above which its retailers or distributors may not resell the products, provided that the RRP or the maximum price does not amount to a fixed or minimum resale price as a result of pressure or incentives.
Minimum advertised price policies are unilateral programs that manufacturers can use to limit their retailers from advertising products below a predetermined level. Unlike resale price maintenance (RPM) agreements, MAP policies don't strictly limit product pricing.
However, RPM agreements are usually unlawful because they prevent you from offering lower prices and setting your prices independently to attract more customers. If you have been involved in RPM with your supplier, you may both be found to be breaking competition law.
While it used to be that manufacturers could only suggest a minimum retail price, the U.S. Supreme Court changed that rule. Now, manufacturers may, under appropriate circumstances, require a minimum retail price to be charged. Manufacturers cannot agree between themselves to set prices for their products.
A: The key word is "suggested." A dealer is free to set the retail price of the products it sells. A dealer can set the price at the MSRP or at a different price, as long as the dealer comes to that decision on its own. However, the manufacturer can decide not to use distributors that do not adhere to its MSRP.
Manufacturers can legally enforce both their MAP pricing policy and their MSRP by punishing a retailer who repeatedly violates either of these policies, including refusing to continue doing business with that company.
You must not claim a discount against the recommended retail price (RRP), if the RRP is significantly higher than the price generally charged for the product.