When the seller requires that only certain dealers carry its products and also that these dealers not handle competitors' products, its strategy is known as
a. exclusive distribution
b. horizontal restraint of trade
c. disintermediation
d. selective distribution
e. horizontal market division

The correct answer is a. exclusive distribution.

Explanation:

Exclusive distribution refers to a commercial agreement between a producer and a distributor that states that the former will only sell his products to the latter if he agrees not to sell competing products.

Exclusive distribution can take different forms. One of the most used ways is that the retailer or distributor undertakes to sell only and exclusively the product of a certain manufacturer or producer while it is committed to use only this distributor as its sales channel.

Another alternative of agreement, although less used, is that the distributor is obliged to buy all the units of a certain product from its manufacturer.

The exclusive distribution agreement is not necessarily expressed in a formal and written contract, although this happens in many cases, in others it is only a word agreement between the parties.

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