Rugged Bikes,Inc.,makes Rugged-brand bicycles and accessories,which are distributed to authorized dealers,including Super Sports Equipment,Inc.Super Sports operates dealerships in several locations.Rugged Bikes imposes restrictions on Super Sports to limit the area in which it sells bikes and thereby insulate other dealers from direct competition.This is

Question

Rugged Bikes,Inc.,makes Rugged-brand bicycles and accessories,which are distributed to authorized dealers,including Super Sports Equipment,Inc.Super Sports operates dealerships in several locations.Rugged Bikes imposes restrictions on Super Sports to limit the area in which it sells bikes and thereby insulate other dealers from direct competition.This is​

Quizplus · Accepted Answer

The scenario describes a territorial restriction, which limits the area in which Super Sports can sell Rugged-brand bicycles and accessories. This is a common practice in industries where manufacturers have multiple authorized dealers to prevent direct competition and ensure each dealer has a viable market within their designated territory.