Manufacture XYZ requires that its wholesalers and retailers buy merchandise only from it.These types of agreements may be deemed illegal under the Competition Act under a specific circumstance.Which of the following terms best describes the aforementioned agreement between XYZ and its wholesalers?
A)exclusive dealership
B)reciprocity
C)product discrimination
D)deceptive slotting
E)price discrimination

Question

Quizplus · Accepted Answer

The agreement between XYZ and its wholesalers is described as exclusive dealership, which is an agreement where a manufacturer or supplier agrees to supply a product or service only to a specific distributor or retailer. However, such agreements may be considered illegal under the Competition Act if they have an anti-competitive effect on the market, as they can limit consumer choice and reduce competition.

Manufacture XYZ Requires That Its Wholesalers and Retailers Buy Merchandise