Exclusive dealing may be legal if the parties show exclusivity is essential for strategic reasons, such as to maintain product image.

Question

Quizplus · Accepted Answer

Exclusive dealing can be legal if it is shown to be necessary for legitimate business reasons, such as maintaining product image or quality control. However, exclusivity arrangements that substantially lessen competition or create barriers to entry may violate antitrust laws. Each case is judged on its particular facts and circumstances.

Exclusive Dealing May Be Legal If the Parties Show Exclusivity