When Jerry Kohl and Brighton went up against Kay’s Kloset, he never backed down, and the case went all the way to the US Supreme Court.
The result was new law. Yeah Jerry!!!
6/29/07
High Court Rules Manufacturers Can Set Prices
The U.S. Supreme Court ruled yesterday that manufacturers have the legal right to set minimum prices for goods sold through retail stores. The ruling overturns a 96-year legal decision that had put pricing in the hands of retailers and, in the process, may change the relationship between merchants and manufacturers.
The case brought before the nation’s top court pitted Leegin Creative Leather Products, a manufacturer of a wide range of casual and dress leather products under a variety of labels including Brighton, against Kay’s Kloset, a retailer in Texas.
In 2002, Leegin discovered that Kay’s Kloset was moving Brighton merchandise but at 20 percent below the manufacturer’s recommended minimum. The retailer argued the pricing was necessary for it to compete against others also discounting Leegin merchandise while the supplier said Kay’s Kloset was, among other things, contributing to a devaluation of the brand.
When Leegin requested the discounting stop, Kay’s Kloset refused and the Brighton line was pulled from the retailer. It was then that the retailer brought a suit, which argued that Leegin was in violation of a 1911 ruling (Dr. Miles Medical Co. v. John D. Park & Sons Co., 220 U. S. 373) that determined minimum prices set by manufacturers were anticompetitive and therefore illegal.
In its new ruling, the Supreme Court has taken the position that manufacturer-set minimum prices do not always discourage competition and in some cases encourage it.
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We at Success Dynamics are proud to have Brighton as a client, and I am proud to call Jerry my friend. After reading this article I called him last night and found him celebrating with his wife Terri in a Newport Beach restaurant. YEAH JERRY!!!
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