Question

Which practice allows producers the right to choose or reject the channel member with which they will do business?

Answer 1

Refusal to deal allows producers the right to choose or reject the channel member with which they will do business.

Producers have the right to choose or reject the channel members with which they will do business; Suppliers may not legally refuse to deal with wholesalers or dealers merely because these wholesalers or dealers resist policies that are anticompetitive or in restraint of trade

What is refusal to deal ?

In general, every company can select its commercial partners, including monopolists. A company with market strength, however, can be restricted in this flexibility under some situations. Focus is placed on how the refusal to deal aids the monopolist in maintaining its monopoly or permits the monopolist to use its monopoly in one market to attempt to monopolize another market as courts work to define those rare instances in which a firm with market power may violate antitrust law by refusing to do business with other firms.

Sometimes the refusal to do business is with clients or suppliers, barring them from doing business with a competitor: "I refuse to do business with you if you do business with my competitor."

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