Question

Lightning Cycles, Inc., makes Lightning-brand motorcycles and accessories, which are distributed to authorized dealers, including Macho Motors, Inc. Macho operates dealerships in several locations. Lightning imposes restrictions on Macho to limit the areas in which they sell the bikes and insulate other dealers from direct competition. This isa.a territorial restriction.b.a price maintenance agreement.c.a refusal to deal.d.a price-fixing agreement.

Answer 1

Answer:

The correct answer is letter "A": territorial restriction.

Explanation:

A territorial restriction is set by companies when they do not want to be exposed to different regions' laws, taxation systems, or competition. The territorial restriction establishes the boundaries where the goods or services can be offered and is usually passed from manufacturers to retailers.