Final answer:
An exclusive dealing agreement is a contract between a manufacturer and a dealer that grants the dealer the exclusive right to sell the manufacturer's products.
Step-by-step explanation:
An exclusive dealing agreement is a contract between a manufacturer and a dealer that grants the dealer the exclusive right to sell the manufacturer's products in a specific geographic area or to a specific customer group. In this agreement, the dealer agrees not to sell competing products from other manufacturers.
In terms of compensation, the exclusive right to sell agreement does not necessarily guarantee financial compensation to the agent for their investment. The compensation for the agent will depend on the specific terms negotiated in the agreement between the manufacturer and the dealer.
For example, the agreement may include provisions for the agent to receive a commission or percentage of sales as compensation, or it may specify a fixed annual fee or lump sum payment. It is important for agents to carefully review and negotiate the terms of the agreement to ensure they are adequately compensated for their investment.