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A common example of exclusive distribution is automobiles. Automobiles are distributed through exclusive distributorship, meaning that each distributor is the only one authorized to sell a particular make of car within a specified territory.
Exclusive distribution : In an exclusive distribution agreement, the supplier agrees to sell its products to only one distributor for resale in a particular territory. At the same time, the distributor is usually limited in its active selling into other (exclusively allocated) territories.
In an exclusive agreement, the specified distributor will be the sole distributor with the right to sell the product within a particular geographic region or within multiple regions. If the arrangement is nonexclusive, the manufacturer or vendor may supply other distributors, sometimes competing in the same market.
A Supply and Distribution Agreement is a contract between a distributor of products and a supplier of products that are legally binding. A distribution agreement is generated when a distributor agrees to resell another party's products (usually the supplier's who can also be the manufacturer).
A common example of exclusive distribution is automobiles. Automobiles are distributed through exclusive distributorship, meaning that each distributor is the only one authorized to sell a particular make of car within a specified territory.