Learning Objectives Chapter 14

6.) Evaluate legal and ethical considerations in distribution.

Legal issues related to distribution typically arise in three areas: (1) exclusive dealing--a restriction imposed by a supplier forbidding the customer from purchasing some type of product from any other supplier; (2) closed sales territories--granting intermediaries exclusive territories is illegal if it diminishes competition; and (3) tying agreement--an agreement under which the seller will sell a particular product only if the buyer also purchases another, specified product.