fair trade (fâr'trād')
n. Trade that conforms to a fair-trade agreement.
fair-trade tr.v., -trad·ed, -trad·ing, -trades.
To sell (a commodity) at a price consistent with a fair-trade agreement.
Marketing Dictionary: fair trade
Term used in retailing that refers to an agreement between a manufacturer and retailers that the manufacturer's product be sold at or above an agreed-upon price. In many states, fair-trade agreements were incorporated into and enforceable by state laws. However, in 1975, Congress passed the Consumer Goods Pricing Act, which prohibits the use of resale price maintenance laws in interstate commerce. This act has worked to effectively eliminate fair-trade arrangements.