Comparative Study of Resale Price Mantenance in Iranian and American Law

Document Type : basic

Author

Assistant Professor in Private Law, Social Sciences Faculty, Payame Noor University, Tehran, Iran

10.30473/jier.2025.68663.1407

Abstract

Distribution agreements may contain restrictive clauses that have economic implications affecting market competition. One such clause is resale price maintenance, which goods suppliers often employ to increase profits. By introducing vertical restraints in the market, this condition can disrupt competition and is generally met with opposition. Of course, in some cases, such as goods related to health and culture, it benefits consumer and increases efficiency. Questions are raised in this regard, such as: what is the nature of this condition and what are the consequences of using it? Which approach to this condition compatible with the interests of society? The Iranian legislator, by announcing the inherent prohibition of determining the resale prices, does not recognize any positive effects for it, but in the U.S. legal system, the validity of this condition is examined under the rule of reasonableness. Comparing these two approaches makes it very difficult to answer the question that which one is more accurate, and despite the economists’ efforts to justify the positive consequences of this condition, there is a hostile approach toward it.

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References

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Journal of Industrial Economics researches
Volume 9, Issue 31
September 2025
Pages 59-70

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History

  • Receive Date: 28 May 2025
  • Revise Date: 29 June 2025
  • Accept Date: 13 July 2025

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