an arrangement a manufacturer makes with a reseller to handle only its products and not those of competitors is called a(n)

1 answer:

4 0

An agreement a manufacturer forms with a reseller to exclusively deal with its products and not those of rivals is referred to as exclusive dealing.

Exclusive dealing. When a supplier binds the buyer by restricting their ability to choose what, who, and where they do business, this is known as exclusive dealing in economics and law. When it significantly reduces industry competition, it is illegal in the majority of nations, including the USA, Australia, and Europe.

Exclusive dealing is permitted when the sales outlets are owned by the supplier owing to vertical integration, but is prohibited (in the US) when they are independent due to the Restrictive Trade Practices Act. If it is registered and approved, however, exclusive dealing is permitted.

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