In some cases, manufacturers can require that wholesalers, brokers, agents, or retailers not carry or represent products from any competing manufacturer. Violations of these restrictions can cause a manufacturer to cut off supply to the intermediary in question. This situation represents which of the following potential ethical or legal issues in supply chain management?
A) exclusive channel arrangements
B) tying contracts
C) channel stuffing
D) dual distribution
E) restricted supply chains

Question

Quizplus · Accepted Answer

Exclusive channel arrangements occur when a manufacturer requires intermediaries to only carry their products and not those of competitors, which can raise ethical and legal concerns.

In Some Cases, Manufacturers Can Require That Wholesalers, Brokers, Agents