Legal concerns about channel of distribution arrangements are most likely to arise when:
A) a traditional channel system is involved.
B) there are horizontal arrangements between firms at the same level of the channel.
C) the firm is using intensive distribution.
D) a firm uses multichannel distribution to reach its target markets.
E) a corporate channel system is involved.

Question

Quizplus · Accepted Answer

Horizontal arrangements between firms at the same level of the channel can lead to legal concerns such as price fixing and market allocation, which are violations of antitrust laws. Other channel arrangements may also have legal considerations, but horizontal arrangements are the most likely to lead to legal issues.

Legal Concerns About Channel of Distribution Arrangements Are Most Likely