Distribution Agreements That Limit Sales by Customer or Territory

question 53

Multiple Choice

Distribution agreements that limit sales by customer or territory

• A)are always illegal.
• B)may be legal if they are horizontal agreements between producers and intermediaries.
• C)are definitely illegal if they are horizontal agreements among competing producers or intermediaries,but may be legal if they are vertical agreements.
• D)are definitely illegal if they are vertical agreements between producers and intermediaries.
• E)None of these answers is correct.

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Definitions:

Ethical Problems

Issues or situations that involve conflicts between moral imperatives, requiring individuals to make a moral judgment.

Unethical Business Practices

Business actions that are illegal, immoral, or just outside the bounds of what is considered acceptable behavior in the business realm.

Innocent People

Individuals who are not guilty of a crime or any wrongdoing for which they might be accused.

Critical Thinker

A person who engages in the analysis, synthesis, and evaluation of information gathered from observation, experience, reflection, reasoning, or communication.