RPM Agreement

RPM Agreement
Resale Price Maintenance (RPM) Agreement
USA
An agreement between a supplier and its distributors that limits the prices the distributors can charge customers for the supplier's products. Types of RPM agreements include a:
• Minimum RPM agreement, in which a distributor agrees not to sell the product for less than a set minimum price (known as a "price floor").
• Maximum RPM agreement, in which a distributor agrees not to sell the product for more than a set maximum price (known as a "price ceiling").
Both minimum RPM agreements and, to a lesser extent, maximum RPM agreements may in certain circumstances violate federal or state antitrust laws.
For more information, see Practice Note, Vertical Price Restraints in the US (www.practicallaw.com/3-203-0904).

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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