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- Title
REGULATION OF CHANNELS OF DISTRIBUTION.
- Authors
Knapp, Robert W.; Werner, Ray O.
- Abstract
The article presents legal developments in marketing with particular focus on the case of Copy-Data Systems Inc. and Synergistics Inc. v. Toshiba America Inc. This case shows that because vertical distribution restrictions are no longer illegal, distinguishing between horizontal and vertical restrictions is becoming more important. In this case Toshiba entered into a nonexclusive distribution agreement with Copy-Data, allowing Copy-Data to distribute Toshiba's copy equipment in certain geographic markets. When Toshiba decided to enter those same markets with direct distribution, it ordered Copy-Data to stop selling in certain states. The court found that Toshiba's move actually promoted intrabrand competition, and as such, should be viewed as a vertical restriction.
- Subjects
UNITED States; MARKETING channels; ACTIONS &; defenses (Law); RESTRICTIONS; TOSHIBA America Inc.; SYNERGISTICS Inc.; COPY-Data Systems Inc.; VERTICAL marketing; ECONOMIC competition; COMMERCIAL law; LAW
- Publication
Journal of Marketing, 1982, Vol 46, Issue 3, p112
- ISSN
0022-2429
- Publication type
Article