Distribution agreements which limit sales by customer or territory:
A) are always illegal.
B) may be legal if they are vertical agreements between producers and intermediaries.
C) are definitely illegal if they are horizontal agreements among competing producers or intermediaries.
D) are definitely illegal if they are vertical agreements between producers and intermediaries.
E) Both B and C are true.

Question

Quizplus · Accepted Answer

Vertical agreements may be legal under certain conditions, while horizontal agreements that limit competition are generally illegal.

Distribution Agreements Which Limit Sales by Customer or Territory