34 chapter 3 scanning the marketing environment the

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Unformatted text preview: acy Protection Act (1998) and the Controlling the Assault of NonSolicited Pornography and Marketing (CAN-SPAM) Act (2004) are designed to restrict information collection and unsolicited e-mail promotions on the Internet.34 CHAPTER 3 SCANNING THE MARKETING ENVIRONMENT The government has four concerns with regard to distribution—earlier referred to as “place” actions in the marketing mix—and the maintenance of competition. The first, exclusive dealing, is an arrangement a manufacturer makes with a reseller to handle only its products and not those of competitors. This practice is only illegal under the Clayton Act when it substantially lessens competition. Requirement contracts require a buyer to purchase all or part of its needs for a product from one seller for a period of time. These contracts are not always illegal but depend on the court’s interpretation of their impact on distribution. Exclusive territorial distributorships are a third distribution issue often under regulatory scrutiny. In this situation, a manufacturer grants a distributor the sole rights to sell a product in a specif...
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