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price fixing definition - legal

n

Artificially setting prices at a certain level, in exception to the workings of a free market, or conspiring to do same. The test is whether such actions or agreements restrain free tradersÂ’ ability to sell according to those tradersÂ’ judgment.
horizontal price fixing
Price fixing by competitors on the same level, such as all supermarkets selling cereal for the same price.
vertical price fixing
Price fixing between or among parties at different levels of distribution, such as manufacturers and distributors trying to control retail price.

Webster's New World Law Dictionary Copyright © 2006 by Wiley Publishing, Inc., Hoboken, New Jersey.
Used by arrangement with John Wiley & Sons, Inc.

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