4 ms·
companies are allowed to give terms stating how their products are sold. presumably the same laws that allow Apple to say that in-store displays must meet certa
by octo_t 13y ago
companies are allowed to give terms stating how their products are sold. presumably the same laws that allow Apple to say that in-store displays must meet certain standards (i.e. no broken/smashed devices etc)
- michaelt 13y agoBut presumably there are some restrictions as to what those terms can be. If Apple said resellers can only sell iphones to white people that would probably not be legal.
- smackfu 13y agoIllegal for a completely different reasons though. Discrimination vs. fair trade.
- travisp 13y agoBecause if Apple said that, it would be requiring its resellers to do something they are not legally permitted to do . A contract to break a law is illegal and unenforceable. Refusing to sell phones to people because they aren't white would break the law. Selling a phone for $150, $200, or $250 is not breaking a law. So while the law may not permit Apple to require specific prices in its contracts, it's for an entirely different reason than why Apple can't tell the reseller to illegally commit racial discrimination.
- genericuser 13y agoAnd much like that Apple telling retailers they must sell at a specific price prevents those retailers from potentially competing with each other (not that they were likely to vary the price much due to the low margins left to them). The effect of Apple fixing prices like this is not different than if the retailers were colluding. Yes, the practice benefits the retailers and Apple, but its effect on consumers is commonly believed to be negative hence it is prohibited in some markets.