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garik1379 [7]
2 years ago
15

An agreement between a manufacturer and a distributor stipulating that a dealer will only distribute that manufacturer's product

s would be classified as a form of
Business
1 answer:
saw5 [17]2 years ago
8 0

The answer is exclusive dealing.

In terms of economics and law, exclusive dealing happens when a supplier binds the customer by restricting their ability to choose what, with whom, and where they do business.

When this significantly lessens competition in an industry, it is illegal in the majority of nations, including the USA, Australia, and Europe.

Exclusive dealing is permissible (in the US) according to the Restrictive Trade Practices Act when the sales outlets are owned by the supplier; but, if it is registered and approved, it is permitted when the outlets are independent.

Hence, an agreement between a manufacturer and a distributor stipulating that a dealer will only distribute that manufacturer's products would be classified as a form of exclusive dealing.

Learn more about agreement:

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