Pharaphrase below paragraph into sentences please! thank you! RPM is the practic
ID: 1120115 • Letter: P
Question
Pharaphrase below paragraph into sentences please! thank you!
RPM is the practice whereby a manufacturer and its distributors agree that the latter will sell the former's product at certain prices (resale price maintenance), at or above a price floor (minimum resale price maintenance) or at or below a price ceiling (maximum resale price maintenance). If a reseller refuses to maintain the price set by the retailer, either openly or covertly, the manufacturer may stop doing business with it. RPM used to be “per se” illegal under the antitrust laws long time ago. RPM prevents resellers from competing too fiercely on price. it is unequivocal that RPM agreements raise consumer prices, prevent efficient retailers from passing on the benefits of their lower costs to consumers, and tend to retard the development of new forms of retailing. At the same time, the purported benefits to consumers of RPM agreements are dubious and even if such benefits exist, they can be achieved by less restrictive business practices.
Explanation / Answer
1.A situation in which a manufacturer and its distributors agrees that the latter will sell the former' product at certain prices.It can be at or above a price floor or below a price ceiling.Such practices is called as RPM Practice.
2.Manufacturer may stop doing business if the reseller refuses to maintain the price set by the retailer openly or currently.
3.Under the antitrust laws RPM used to be "Per se" illegal long time ago and it prevents resllers from competing too fiercely on price.
4.Purported benefits are dubious to consumers of RPM agreements and even if such benefits exist ,it can be achieved by less restrictive business practices.