An agreement between a manufacturer and a dealer that assigns the dealer or distributor an exclusive territory, while the manufacturer agrees to supply only that dealer in the territory is called a ______ territorial agreement.
A) vertical
B) conglomerate
C) congeneric
D) tying
E) per se

Question

Quizplus · Accepted Answer

A vertical territorial agreement is one between a manufacturer and a dealer or distributor. It assigns the dealer or distributor an exclusive territory, and the manufacturer agrees not to sell to other dealers or distributors in that territory in exchange for an agreement by the dealer that it will not operate outside the area assigned.

An Agreement Between a Manufacturer and a Dealer That Assigns