Fair-trade Act (Noun)
Meaning
Formerly a state law that protected manufacturers from price-cutting by allowing them to set minimum retail prices for their merchandise; eliminated by the United States Congress in 1975.
Classification
Nouns denoting communicative processes and contents.
Examples
- The Fair Trade Act of 1937 allowed manufacturers to set minimum prices for their products, thereby protecting them from retailers who might otherwise sell at a loss to undercut their competitors.
- In 1975, the United States Congress repealed the Fair Trade Act, paving the way for greater price competition among retailers.
- The Fair Trade Act was a federal law that had previously allowed manufacturers to dictate the minimum prices at which their products could be sold.
- Before the repeal of the Fair Trade Act, many states had enacted their own fair trade laws, which were modeled after the federal legislation.
- The Fair Trade Act had been criticized for restricting competition and stifling innovation, leading to its eventual repeal by Congress in 1975.