Distribution agreements that limit sales by customer or territory
A)are always illegal.
B)may be legal if they are horizontal agreements between producers and intermediaries.
C)are definitely illegal if they are horizontal agreements among competing producers or intermediaries,but may be legal if they are vertical agreements.
D)are definitely illegal if they are vertical agreements between producers and intermediaries.
E)None of these answers is correct.

Question

Quizplus · Accepted Answer

Horizontal arrangements among competing retailers,wholesalers,or producers to limit sales by customer or territory have consistently been ruled illegal by the U.S.Supreme Court,but the legality of vertical arrangements is not so clear-cut.

Distribution Agreements That Limit Sales by Customer or Territory