When a supplier creates a restrictive agreement that prohibits intermediaries that handle its product from selling competing firms' products,_______________ has occurred.
A)Just-in-time (JIT) inventory control system
B)Materials requirement planning (MRP)
C)Exclusive dealing
D)Exclusive territory
E)Tying contract

Question

Quizplus · Accepted Answer

Exclusive dealing refers to a situation where a supplier requires an intermediary to sell only its products and not those of its competitors. This restriction is often imposed through a contract that includes penalties or termination clauses if the intermediary breaches the agreement.

When a Supplier Creates a Restrictive Agreement That Prohibits Intermediaries