What is meant by exclusive dealing?
Exclusive deals arise when sellers put various restrictions on the buying rights of the customers. It prevents the right of the customer to choose a product according to his wish. It decreases the competition for the seller in the market.
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EXCLUSIVE DEALING
It is also known as requirement contracts. Exclusive dealing is a contract between manufacturer and retailers, which prevents the retailer from selling any other manufacturer's goods. It also prevents to purchase goods from any other supplier.
Some countries consider this as legal, whereas few consider this an illegal practice. Exclusive dealing is very beneficial for the manufacturer as it provides various support services from retailers. It also facilitates the retailer to get specialized in one particular product. It will help in providing better sales service to the costumers. It will also help in increasing sales, which benefits manufacturers as well as retailers.
Manufacturers also get many competitive advantages. It helps in reducing competition in the market.
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