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Such a distributor becomes the sole authorized seller of the manufacturer's specific products. An example of exclusive distribution is Apple solely authorizing AT&T to be the distributor of the iPhone to end users.
An Exclusive Agency Agreement is a legal contract between a real estate firm and home seller that grants the firm the right to be the only entity to market and sell a property. In other words, this agreement gives the real estate agent the right to be the only agent to sell the property.
An example of exclusive distribution is Apple solely authorizing AT&T to be the distributor of the iPhone to end users.
Under an exclusive distribution agreement, a business agrees to use only one distributor in a territory. The supplier is free to make agreements with other distributors, so long as those distributors are restricted to their own territory.
Examples of companies which use exclusive distribution Samsung, Apple, Gucci, Lamborghini, Mercedes, BMW etc.
Institution Definition 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.
Exclusive distribution is a distribution strategy whereby a producer sells its products or services in only one retail outlet in a specific geographical area.
Exclusive dealing or requirements contracts between manufacturers and retailers are common and are generally lawful.
In simple terms, an exclusive dealing contract prevents a distributor from selling the products of a different manufacturer, and a requirements contract prevents a manufacturer from buying inputs from a different supplier.