Jennie has the right to sell Lovely cosmetics. According to her contract with Lovely, Jennie may only sell cosmetics in three counties in Delaware. No one else may sell Lovely cosmetics in this region. If another door-to-door cosmetics seller sued Lovely, alleging that this agreement with Jennie was illegal, what would they base their suit on?

Question

Quizplus · Accepted Answer

The other door-to-door cosmetics seller would base their suit on an illegal territorial restraint, as Lovely has granted Jennie exclusive selling rights in a specific geographic region, which may be seen as an illegal attempt to restrain competition in that market.

Jennie Has the Right to Sell Lovely Cosmetics