fair-trade act

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Fair-Trade Act

Definition: The "Fair-Trade Act" was a law in the United States that allowed manufacturers to set minimum prices for their products. This meant that stores could not sell these products for less than the minimum price set by the manufacturers. The goal was to protect manufacturers from competition that could lower prices too much. However, this law was removed by Congress in 1975.

Usage Instructions:

• Part of Speech: Noun
• Context: The term is often used in discussions about business, economics, and laws related to pricing and trade.
• Example Sentence: "Before the Fair-Trade Act was abolished, many manufacturers felt secure knowing their products would not be sold at lower prices by competitors."

Advanced Usage:

In academic or professional discussions, you might hear phrases like: - "The implications of the Fair-Trade Act on market competition were significant." - "Many economists debate the fairness of price-setting laws like the Fair-Trade Act."

Word Variants:

• Fair Trade: This term is more commonly used today and refers to a movement aimed at helping producers in developing countries achieve fair prices for their goods. It is different from the Fair-Trade Act but shares the idea of fairness in trade.

Different Meaning:

• While "fair trade" today often refers to ethical buying practices, the "Fair-Trade Act" specifically refers to the historical law about price-setting.

Synonyms:

• Price maintenance law (another term used for the Fair-Trade Act).
• Minimum price law (a general term for laws that set minimum prices).

Idioms and Phrasal Verbs:

• There aren’t specific idioms or phrasal verbs directly associated with the Fair-Trade Act, but you might hear phrases like "level the playing field," which means to create equal conditions in a competitive environment, a concept related to fair trading practices.

Summary:

The Fair-Trade Act was a law that aimed to protect manufacturers by allowing them to set minimum prices for their products. Although it was eliminated in 1975, it played a significant role in discussions about pricing and competition in the market.

Academic

Noun

1. 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