If a local dairy farm sells its ice cream to a distributor and contractually restricts the distributor from reselling the ice cream outside of the south east, this is an example of _______
A)territorial confinement
B)exclusive dealing
C)a requirements contract
D)a tying arrangement

Question

Quizplus · Accepted Answer

The contractual restriction placed on the distributor limits the geographic scope in which the ice cream can be sold, which is known as territorial confinement. This allows the dairy farm to have control over where their product is being sold and prevents any potential competition with their own sales outside of the designated area.

If a Local Dairy Farm Sells Its Ice Cream to a Distributor