Question

Trail Bikes, Inc., makes and distributes Trail-brand bicycles and accessories to authorized dealers. To prevent price-cutting by dealers in direct competition, Trail Bikes imposes limits on where each dealer can sell Trail products. This is

Answer 1

Territorial restriction

Step-by-step explanation:

Territorial restriction is the way that a manufacturer restricts the territory where a wholesaler or retail seller is able to sell products.

Manufacturers usually use this technique to reduce Interbrand competition and control price.

In the given scenario Trailer Bikes Inc supplies bicycles to dealers and restricts where they can sell the bicycles to prevent price-cutting by dealers in direct competition.