When International Harvester introduced a baler that would produce a rolled bale of hay six feet in diameter and six feet wide, many farmers wanted to own one. One of the distributors for these balers was in Central Georgia. A customer in middle Tennessee contacted the company and was told that he could not buy from the Georgia Company and must purchase his baler from a local dealer even though the local dealer had none in stock, and the Georgia dealer did. This is an example of a(n):
A) horizontal alliance
B) exclusive-territory policy
C) intensive distribution strategy
D) exclusive dealing agreement
E) tying contract

Question

Quizplus · Accepted Answer

This scenario describes an exclusive-territory policy, where a distributor is restricted to selling products only within a certain geographic area, preventing sales to customers outside that area even if they have the product in stock.

When International Harvester Introduced a Baler That Would Produce a Rolled