If a cigarette manufacturer sells its cigarettes to a distributor and contractually restricts the distributor from reselling the cigarettes outside the state of New York, this is an example of _____.
A)a tying arrangement
B)a requirements contract
C)territorial confinement
D)exclusive dealing

Question

Quizplus · Accepted Answer

Territorial confinement is a type of vertical restraint in which a manufacturer imposes restrictions on the geographic area in which its product can be resold by the distributor. In this case, the cigarette manufacturer has contractually limited the distributor from reselling the cigarettes outside the state of New York.

If a Cigarette Manufacturer Sells Its Cigarettes to a Distributor