Which of the following is true of an exclusive dealing arrangement between a producer and a dealer?
A) It does not allow other producers to sell to that dealer.
B) It gives the producer's products more shelf power compared to a competitor's products being sold by the dealer.
C) It prohibits the producer from selling outside the dealer's territory.
D) It can be considered illegal if it increases competition substantially.
E) It prevents the producer from using any other dealer to sell its products regardless of geographical area.

Question

Quizplus · Accepted Answer

Exclusive dealing arrangements restrict the dealer from purchasing products from other producers, thus not allowing other producers to sell to that dealer.

Which of the Following Is True of an Exclusive Dealing