An agreement between the producer and a distributor of certain goods that one will trade only with the other. This may apply generally, or within a particular country or district. In some cases this means that a retailer agrees to stock only one manufacturer's brands; in other cases a manufacturer agrees to sell through only one outlet in a given area. It is possible for both forms of restriction to apply. Such practices are criticized as being in restraint of trade.
Subjects: Law — Economics.