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Why would a producer of a product ever refuse to sell to interested re-sellers (

ID: 1110817 • Letter: W

Question

Why would a producer of a product ever refuse to sell to interested re-sellers (buyers) who wish to buy the product at the going price? An producer might refuse to sell to a re-seller (buyer) willing to pay the going price because A. it seeks to award exclusive contracts to create dealer loyalty O B. it disapproves of dealers that only O C. it is attempting to create more market competition. O D. it is a violation of U.S. antitrust laws to sell to all buyers. tothe wholesale price E. it wants buyers to make their purchases through the Internet.

Explanation / Answer

The correct answer is A. The producer may look to award exclusive contracts to create dealer loyalty. The correct answer is thus A.