Sometimes a seller requires its dealers to abstain from handling competitors' products in an arrangement called ________.
A) exclusive distribution
B) exclusive dealing
C) selective distribution
D) exclusive pricing
E) disintermediation

Question

Quizplus · Accepted Answer

Exclusive dealing is an arrangement in which a seller requires its dealers to abstain from handling competitors' products. This type of agreement is often used to maintain a seller's market power by limiting the distribution of rivals' products. Exclusive distribution, selective distribution, and exclusive pricing are all related concepts, but they do not necessarily involve a requirement to abstain from handling competitors' products. Disintermediation refers to the removal of intermediaries from a supply chain or distribution channel, which is the opposite of exclusive dealing.

Sometimes a Seller Requires Its Dealers to Abstain from Handling