When selecting the degree of market exposure for a firm's products, it's important to remember that:
A) vertical arrangements between producers and intermediaries which limit sales by customer or territory are definitely illegal.
B) the Federal Trade Commission prohibits exclusive distribution.
C) vertical arrangements between producers and intermediaries which limit sales by customer or territory may be legal according to a recent Supreme Court ruling.
D) horizontal arrangements among competing producers or intermediaries which limit sales by customer or territory are generally considered legal.
E) Both B and D are true.

Question

Quizplus · Accepted Answer

According to a recent Supreme Court ruling, vertical arrangements between producers and intermediaries which limit sales by customer or territory may be legal. Horizontal arrangements among competing producers or intermediaries which limit sales by customer or territory are generally considered illegal. Option B is incorrect as it states that the FTC prohibits exclusive distribution, which is not always true.

When Selecting the Degree of Market Exposure for a Firm's