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- W223341566 abstract "Numerous sources pointed to the first full term of the Roberts Court as proof of a strong rightward tilt in the political orientation of the Supreme Court. (1) Drawing from disparate cases in areas ranging from election law (2) and free speech (3) to school segregation (4) and the stringency of court filing deadlines, (5) journalists, (6) public officials, (7) academics, (8) and advocacy groups (9) decried the 2006 Supreme Court Term as a full-frontal assault on democratic institutions and evidence that Chief Justice Roberts and Justice Alito were far more than their confirmation hearings had suggested. Furthermore, various commentators suggested that the two newly appointed Justices had joined Justices Scalia, Kennedy, and Thomas in forming a five-Justice conservative majority that abandoned sound legal principles to reach politically results. (10) Last term, a closely divided Court decided Leegin Creative Leather Products, Inc. v. PSKS, Inc. (11) For 96 years, the Court had adhered to a of per se illegality for minimum resale price maintenance (RPM) on the grounds that it was a violation of the Sherman Act. (12) That is, it was illegal for any manufacturer to require its distributors to agree to sell its manufactured product at or above a set retail price floor, regardless of the agreement's impact on overall competition. In Leegin, however, a 5-to-4 majority of the Court overturned this Dr. Miles in favor of a broader rule of reason analysis that considers the likely competitive effects of potentially anticompetitive practices on a case-by-case basis. (13) Following the dissent's lead, various commentators condemned the ruling as a rejection of longstanding precedent in favor of business interests and at the expense of consumers. (14) To the contrary, the Court's decision was not only the economically appropriate outcome, it was consistent with the doctrine of stare decisis, the original understanding and text of the Sherman Act, and the ordinary deference extended to the political branches for those questions that do not require legal inquiry. Leegin Creative Leather Products designs, manufactures, and distributes leather goods and women's fashion accessories under the brand name Brighton. (15) Brighton products are sold at more than 5,000 locations, primarily small, independent boutiques and specialty stores. (16) Kay's Kloset, a women's apparel store owned and operated by PSKS, Inc., sold Brighton goods from 1995 until 2002. (17) Brighton was the store's most important brand and at one time accounted for nearly half of the store's profits. (18) Two years after Kay's began carrying Brighton products, Leegin initiated a pricing policy under which the company refused to sell Brighton goods to retailers that discounted the goods below suggested retail prices. (19) The policy was in harmony with Leegin's choice to distribute through smaller, independent retailers on the theory that those retailers provided customers more services and an overall shopping experience superior to that offered by large, impersonal discount stores. (20) Leegin adopted the pricing policy so that its retailers would have sufficient profit margins to provide customers those services it regarded as key to its overall sales strategy. (21) The company had also expressed concern that heavy discounting by retailers harmed the Brighton brand image and reputation. (22) In late 2002, Leegin discovered that Kay's had marked down its entire Brighton inventory by 20 percent. It requested that Kay's cease discounting and, when Kay's refused, Leegin stopped selling to the store. (23) The loss of the Brighton brand had a significantly negative impact on Kay's subsequent sales. (24) Kay's parent company sued Leegin for violating section 1 of the Sherman Act, alleging that Leegin had entered into illegal agreements with its retailers to fix the prices of Brighton products. (25) A jury awarded PSKS $1. …" @default.
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- W223341566 date "2008-03-22" @default.
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- W223341566 title "The Course Correction a Century in the Making: Leegin Creative Leather Products, Inc. V. PSKS, Inc" @default.
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