When a supplier creates a restrictive agreement that prohibits intermediaries that handle its product from selling competing firms' products, _______________ has occurred.

Question

Quizplus · Accepted Answer

The situation described is an example of exclusive dealing, where a supplier requires intermediaries to only sell its products and not those of competitors. Just-in-time inventory control systems and materials requirement planning (MRP) are inventory management techniques. Exclusive territory refers to a supplier designating a specific geographic area for a particular intermediary to operate in. A tying contract refers to a supplier requiring a customer to purchase one product in order to obtain another.

When a Supplier Creates a Restrictive Agreement That Prohibits Intermediaries