If Penn Hills Mfg

If Penn Hills Mfg.Corp.gives the Johnstown Distributing Co.the exclusive right to distribute Penn Hills' products in Ohio,with the understanding that Johnstown can't sell Penn Hills' products outside Ohio or to other wholesalers in Ohio,the arrangement

A) would be illegal,because the courts have ruled that all vertical arrangements between producers and intermediaries are illegal.
B) might or might not be considered legal.The courts would weigh the possible good effects of this vertical arrangement against possible restrictions on competition.
C) would be legal,because the courts have ruled that all vertical arrangements between producers and intermediaries are legal.
D) would be illegal,because the courts have ruled that all horizontal arrangements between competitors are illegal.
E) would be legal,because the courts have ruled that all horizontal arrangements between competitors are legal.