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Ford dealerships are franchises, owned by the dealers. The contract they have with Ford Motor Company generally obligates them to sell only cars produced
Ford dealerships are franchises, owned by the dealers. The contract they have with Ford Motor Company generally obligates them to sell only cars produced by Ford. What type of contract have the dealers signed? Why are these contracts legal? (Check all that apply.) A. This is a requirements contract. Such deals are legal because they will make the market for cars more efficient. B. This is an exclusive dealing contract. Such deals are legal because they do not substantially lessen competition or tend to create a monopoly. C. This is an exclusive dealing contract. Such deals are legal because they incentivize Ford Motor Company and the dealerships to advertise and promote Ford cars. D. This is a requirements contract. Such deals are legal because they draw business to the dealerships and bring business to Ford in kind.
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