Distribution agreements which limit sales by customer or territory:
A) are always illegal.
B) may be legal if they are horizontal agreements between producers and intermediaries.
C) are definitely illegal if they are horizontal agreements among competing producers or intermediaries, but may be legal if they are vertical agreements.
D) are definitely illegal if they are vertical agreements between producers and intermediaries.
E) None of these alternatives is correct.

Question

Quizplus · Accepted Answer

Distribution agreements that limit sales by customer or territory may be legal if they are vertical agreements between producers and intermediaries. However, if they are horizontal agreements among competing producers or intermediaries, they are definitely illegal. It is important to note that the legality of these types of agreements depends on a variety of factors, including market share and overall impact on competition.

Distribution Agreements Which Limit Sales by Customer or Territory