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Simple English definitions for legal terms
fair-trade law
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A quick definition of fair-trade law:
Fair-Trade Law: A law made by the government to make sure that people who make things like coffee, chocolate, and clothes get paid fairly for their work. This law helps to protect workers and make sure they are treated well. Some states used to have this law, but now most of them don't because it might go against another law called the Sherman Antitrust Act.
A more thorough explanation:
A fair-trade law is a law created by a state to protect and enforce fair-trade agreements. These agreements are made between manufacturers and retailers to set a minimum price for a product. This helps to prevent retailers from selling products at a lower price than the manufacturer intended, which can hurt the manufacturer's profits.
For example, if a manufacturer sets a minimum price of $10 for a product, a fair-trade agreement would require retailers to sell the product for at least $10. This ensures that the manufacturer can make a profit and continue to produce the product.
However, fair-trade laws can sometimes violate the Sherman Antitrust Act, which is a federal law that prohibits anti-competitive behavior. This means that some states have repealed their fair-trade laws to avoid violating federal law.
Overall, fair-trade laws are designed to protect manufacturers and ensure that they can make a fair profit from their products. While they may not be as common as they once were, they can still be an important tool for protecting businesses and consumers.