Ethical issues

Legal and ethical issues between customer and supplier

Introduction

A supplier is a person or company that provides certain goods company. The supplier will then provide the company with the necessary inputs to production. The company will use to transform them into outputs (Levin, n.d). Therefore, the ability of suppliers to impose more or less easily their conditions, the price and quality of goods supplied, directly affects the company. Generally, a small number of suppliers or a specific brand is assets for the said service. Company finds himself in a situation of dependence vis-à-vis its suppliers (Levin, n.d).

Discussion

In terms of the legislation in the majority of cases, companies have the right to organize and meet their goals marketing channels (Levin, n.d). However, some laws forbid the use of tactics that prevent the use of the channel competitors. The following are the legal aspects of various types of distribution activities.

The right to the exclusive trade

The strategy, according to which the manufacturer gives the right to trade their goods to a limited number of intermediaries, called exclusive distribution (Willmott, 2001). If the supplier company requires that dealers stop buying products of its competitors, we have the exclusive trade strategy. At the conclusion of such agreements will benefit both parties: the supplier company receives more loyal and dependent dealers, distributors, in turn, a stable source of supply and support of the manufacturer (Anonymous, n.d). However in the U.S. exclusive trade agreements are recognized by law only in cases where: they do not have a negative impact on the level of competition and do not lead to the creation of a monopoly, and when there is no coercion of the parties when the agreement (Willmott, 2001).

Exclusive service territory

The practice of exclusive trade often involves the conclusion of territorial agreements. For example, the producer agrees to deliver ...