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journal article Exclusive DealingThe Journal of Law & Economics Vol. 25, No. 1 (Apr., 1982) , pp. 1-25 (25 pages) Published By: The University of Chicago Press https://www.jstor.org/stable/725222 Read and download Log in through your school or library Alternate access options For independent researchers Read Online Read 100 articles/month free Subscribe to JPASS Unlimited reading + 10 downloads Purchase article $14.00 - Download now and later Journal Information Current issues are now on the Chicago Journals website. Read the latest issue.Established in 1958, The Journal of Law and Economics publishes research on a broad range of topics including the economic analysis of regulation and the behavior of regulated firms, the political economy of legislation and legislative processes, law and finance, corporate finance and governance, and industrial organization. The Journal has published some of the most influential and widely cited articles in these areas. Publisher Information Since its origins in 1890 as one of the three main divisions of the University of Chicago, The University of Chicago Press has embraced as its mission the obligation to disseminate scholarship of the highest standard and to publish serious works that promote education, foster public understanding, and enrich cultural life. Today, the Journals Division publishes more than 70 journals and hardcover serials, in a wide range of academic disciplines, including the social sciences, the humanities, education, the biological and medical sciences, and the physical sciences. Rights & Usage This item is
part of a JSTOR Collection. What the ACCC does
What the ACCC can't do
Exclusive dealing happens when one business trading with another business puts conditions on the other’s freedom to choose:
For example, a supplier refuses to supply or refuses to give a particular price or discount, unless the purchaser agrees:
When a purchaser places restrictions on a supplier, this is also exclusive dealing. For example, a purchaser refuses to buy from a supplier unless the supplier agrees not to supply the purchaser’s competitors. Exclusive dealing is common in business arrangements. Often, it is legal because it doesn't substantially lessen competition. Example 1 of exclusive dealing that isn't illegalScenarioAn independent electronics store decides it will only buy from suppliers that agree not to supply its competitors. Because there are many other retailers and suppliers in the market, competition isn’t affected. Relevant factorsWhile this is exclusive dealing, it isn’t illegal because it won't substantially lessen competition. There are many other retailers and suppliers in the market. Example 2 of exclusive dealing that isn't illegalScenarioAn office supplies retailer usually buys pencils from Business A and Business B. They are 2 of many available pencil suppliers. Business A tells the retailer it will only supply pencils if the retailer stops buying from Business B. The retailer stops buying pencils from Business B. Relevant factorsBusiness A’s behaviour is exclusive dealing. However, it isn’t illegal, because it won’t substantially lessen competition. There are many other pencil suppliers in the market. Exclusive dealing is illegal when it has the purpose, effect or likely effect of substantially lessening competition. This is more likely when:
For example, a business tries to stop another business from competing by telling its supplier not to sell a competitor something essential that the competitor can’t buy elsewhere. This can have both the purpose and effect of substantially lessening competition. A business planning an exclusive dealing arrangement that risks breaking competition law can seek an exemption by lodging a notification with the ACCC. Notification is an exemption process and gives protection from legal action. We assess whether the conduct is likely to substantially lessen competition and, if so, whether it is still in the public interest. Exclusive dealing notification guidelines Exemptions Competition and anti-competitive behaviour Misuse of market power Small business education program Small business and the Competition and Consumer Act Competition and Consumer Act 2010
ShareWhat advantage using an exclusive dealing provide to the seller and a dealer?Exclusive dealing arrangements generally promote more effective distribution by increasing dedication and loyalty; and they can minimize free-riding, improve product quality, and ensure customers and suppliers of a reliable source of supply.
Which of the following is an advantage of exclusive dealing between?Which of the following is an advantage of exclusive dealing between a seller and a dealer? The dealer obtains a steady source of supply and more support from the seller.
Which of the following is a difference between storage warehouses and distribution Centres?A warehouse is used for storing products while a distribution center, apart from storing products offers value-added services like product mixing, order fulfillment, cross docking, packaging etc. A distribution center stores products for relatively lesser periods compared to a warehouse.
Is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of the producers merchandise?Full-line forcing is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its line.
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