Definition Edit

Price protection is an agreement between a seller and buyer (or distributor, whereby (i) in the case of a price increase, the buyer will be able to continue purchasing the product at the lower price for a period of time after the price increase, and (ii) in the case of a price decrease, the seller will give the buyer a credit or rebate for the difference in price between the old price and the new price for all of the stock the buyer has on hand which was purchased at the higher price.

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