Shimano Restricting Component Internet Sales? - Page 2

Sorry, I think that Jonathan Kaplan is right on this one. Your definition of price fixing is correct, but you need to remove the word *only*.

gwhite <gwhite@hocuspocus_ti.com> writes:

> Tim McNamara wrote:
>>
>> "cheg" <spameater@communistcast.net> writes:
>>
>> > In a free market the manufacturer can sell the product at whatever the market will bear. If you
>> > object to their pricing, buy a competing product. That is capitalism.
>>
>> Umm, no. That's not capitalism. It's a free (retail) market. Those are not the same things.
>

Nice to see you maintaining the edge on that rapier wit!

"BaCardi" <usenet-forum@cyclingforums.com> wrote in message
news:3fd671e9$1_4@news.chariot.net.au...
> Ken wrote:
> > "Jonathan Kaplan" <insure10nospam@nospamyahoo.com> wrote in
news:ha6dnd-
> >
u-3rhb9E-iRVn-hQ@comcast.com:news:ha6dndu-3rhb9E-iRVn-hQ@comcast. com:
> > > Price fixing is supposed to be illegal, yet many
manufacturers like
> > > Sony, Nikon, Shimano, etc., "fix" prices by establishing
"authorized"
> > > dealers or "minimum advertised prices".
> > False. Price fixing is only illegal if *more than one*
manufacturer
> > agree to sell different, but competitive products at the
same price.
>
>
>
>
> Sorry, I think that Jonathan Kaplan is right on this one. Your definition of price fixing is
> correct, but you need to remove
the
> word *only*.

A manufacturer who fixes the retail price of its goods by agreement with a retail seller is subject
to liability for price fixing. What others have mentioned is that a manufacturer may legitimately
terminate a dealership agreement with a dealer who sells below MSRP because that dealer cannot
generate enough revenue to meet its warranty or other dealership obligations. The Su-preem Court has
said that it is not per se "price fixing" to terminate the dealership agreement of a price-cutter if
there are good non-price fixing reasons for doing so. Absent a per se rule of illegality, plaintiffs
may have a tougher time proving that a non-price vertical restraint amounts to "price fixing" under
the Sherman Act. This is my take on the case law, although I do not do antitrust. -- Jay Beattie.

You have the right idea, but price fixing is not exclusive of terms of said practices. What Shimano is allegedly doing, if proven true, can be deemed as price fixing. The problem with price fixing is that it is very hard to prove in a court of law. The Sherman Anti-Trust act is dated and is more applicable to the monopolistic powers of companies that commit other types of violations, not only price fixing, itself.

so does this mean that if a buy shimano components on ebay that they will not be covered under shimano's standard US warranty? The actual text of shimano's warranty makes no direct reference to "authorized" dealers, the only mention it makes to dealers at all is this:

"To obtain service under this warranty, you must send your Shimano product together with the retail seller's original bill, your charge or credit receipt or other satisfactory proof of the date of purchase of the product to Shimano American Corporation"

the full text of the warranty is here:
http://bike.shimano.com/services/warranty.asp

On Sun, 04 Jan 2004 19:54:59 GMT, jofhanwright
<usenet-forum@cyclingforums.com> wrote:

>Grenouil wrote:
> > Was just browsing the QBP catalog at http://aebike.com/http://aebike.com/ . All the Shimano
> > components in this catalog now carry a note..... "This manufacturer currently prefers that we
> > not sell this item via the internet. Please call for more information." Does this mean we can
> > now only buy Shimano parts through Shimano authorized distributors?
>
>
>
>so does this mean that if a buy shimano components on ebay that they will not be covered under
>shimano's standard US warranty? The actual text of shimano's warranty makes no direct reference to
>"authorized" dealers, the only mention it makes to dealers at all is this:
>
>"To obtain service under this warranty, you must send your Shimano product together with the retail
>seller's original bill, your charge or credit receipt or other satisfactory proof of the date of
>purchase of the product to Shimano American Corporation"
>
>the full text of the warranty is here: http://bike.shimano.com/services/warranty.asp

The spirit of the request not to sell Shimano parts over the internet is probably rooted in the
support of the smaller bike shops.

Big Superstores that have low overhead and can undercut competition by dumping overstocked
merchandise below cost can make it difficult for local full service bike shops to compete.

Shopping Ebay can be risky, sometimes merchandise is not described correctly or comes with no
warranty and is difficult to return. You need to know who you are dealing with and what you are
buying. I would hope Shimano would honor any warranty included in the original packaging of their
product though.