Lightning Cycles,Inc.,makes Lightning-brand motorcycles and accessories,which are distributed to authorized dealers,including Macho Motors,Inc.Macho operates dealerships in several locations.Lightning imposes territorial restrictions on Macho to insulate other dealers from direct competition.This is

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This scenario is a vertical restraint as it involves restrictions imposed by the manufacturer (Lightning) on the distributor (Macho Motors) to limit competition with other authorized dealers. The restrictions are designed to maintain the manufacturer's control over the distribution and marketing of their products.