Exclusive Agreement

Exclusive Agreement

An exclusive agreement is a contract that limits who a supplier or retailer can deal with. It might stop a parts supplier from selling to competitors, or stop a retailer from stocking rival brands. Companies use exclusivity to raise barriers to entry and make it harder for rivals to compete. That is a supply-chain tactic, not an ordinary purchase order. It is not automatically illegal, but regulators can challenge a deal if it shuts out competition too far.

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