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.
Florida Contract between Manufacturer and Distributor Regarding Minimum Advertised Price
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FAQ
In its simplest form, minimum advertised pricing (MAP) is the lowest price a retailer can advertise the product for sale. To clarify, this does not refer to the lowest price they can sell it for in their storejust the lowest that they can show online or in an advertisement.
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.
Unlike a resale-price-maintenance agreement, a MAP policy does not stop a retailer from actually selling below any minimum price. In a resale price maintenance policy or agreement, by contrast, the manufacturer doesn't allow distributors to sell the products below a certain price.
A manufacturer does have a legal right to set a suggested retail price (a manufacturer's suggested retail price or MSRP). The manufacturer also has the right to terminate a retailer who prices below the MSRP.
Since minimum advertised pricing only relates to advertised pricing and does not tell a retailer what they can sell it for in their store, this practice is legal under U.S. antitrust statutes.
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.
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.
If designed incorrectly, a court could find your MAP policy an illegal restraint of trade under state, federal or foreign antitrust laws. The penalty for such a violation can be disastrous antitrust laws allow claimants to pursue treble (triple) damages and the government may impose additional civil penalties.
A naked agreement among competitors to fix prices is almost always illegal, whether prices are specified at a minimum, maximum, or within some range. Illegal price fixing occurs whenever two or more competitors agree to take actions to raise, lower, maintain, or stabilize the price of any product or service.