situation in which a manufacturer grants a distributor the sole rights to sell a product in a specific geographic area is called __________.

Question

Quizplus · Accepted Answer

This situation is called an exclusive territorial distributorship, where a manufacturer gives a single distributor the exclusive right to sell a product within a specific geographic area. Option A (exclusive dealing) refers to a situation where a manufacturer requires a distributor to sell only its products and not carry competing products. Option B (a tying arrangement) refers to a situation where a manufacturer ties the sale of one product to the purchase of another product. Option C (a selective promotion contract) refers to a situation where a manufacturer agrees to assist a distributor with promotion but only if the distributor meets certain criteria. Option E (a requirement contract) refers to a situation where a distributor is required to purchase a certain amount of the product from the manufacturer.

Situation in Which a Manufacturer Grants a Distributor the Sole