L and Ethical Issues in Channel

LEGAL AND ETHICAL ISSUES IN CHANNEL RELATIONS 6.6 Companies atomic number 18 ratifiedly issue to develop whatever channel arrangements that suit them. further there argon a few jural and respectable issues that have to be considered in the merchandising channel arrangements. Those issues are: (a) unshared Dealings sole(prenominal) traffic refer to the arrangements do between the firm and the go-between. For example, the dealers whoremasternot handle competitorsÊ products; dealers faecal matter only handle the firmÊs products. Exclusive arrangements are legal as long as they do not substantially lessen competition or tend to create a monopoly, and as long as both par bring to stupefyhers enter into the pact voluntarily. (b) Exclusive Territories Exclusive territories refer to certain areas of intermediaries. It is legal as long as the intermediary does not sell the products immaterial the predetermined territory. ? TOPIC 6 MANAGING MARKETING CHANNEL S, INTERMEDIARIES AND PHYSICAL dispersion 82 (c) Tying Agreements Producers of a strong post sometimes sell it to dealers only if they testament take some or all of the rest of the product lines. This practice is called fullline forcing. Such tie agreements are not necessarily illegal but it will vex a violation if the elements of market monopoly exist.

(d) DealersÊ Rights Producers are guiltless to fill their dealers but their right to terminate dealers is somewhat restricted. In general, sellers can drop dealers „for cause‰ or for reasons stated in the agreement. ACTIVITY 6.2 bum you differentiate T he Store supermarket line from the rice who! lesaler at your government agency based on the purchase loudness or sales volume of rice for both companies? EXERCISE 6.2 Essay Questions 1. Explain the inwardness of: (a) Exclusive dealing (b) Exclusive territories (c) Tying agreements (d) DealersÊ rights 2. List and explain the forms or types of power that is frequently used by producers on their appoint marketing channel to elicit cooperation. 3. WhatÊs the...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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