Distribution Agreements Which Limit Sales by Customer or Territory

question 280

Multiple Choice

Distribution agreements which 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 alternatives is correct.

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Definitions:

Positive Externality

A benefit that is enjoyed by a third-party as a result of an economic transaction in which they had no direct involvement.

New Technologies

Innovations or advancements in technology that can lead to improved processes, products, or capabilities, often contributing to economic growth and efficiency.

Positive Externality

A positive outcome experienced by a person who did not intentionally seek out that advantage, frequently tied to public goods or services.

New Technologies

Innovations and advancements in technology that create new products, processes, or methods, often leading to enhanced efficiency or productivity.