Final answer:
Auto dealers must include their licensed name or brand in advertising, and exclusive dealing agreements in this industry can be legal if they promote competition, but potentially illegal if they limit it.
Step-by-step explanation:
When it comes to advertising regulations for auto dealerships, it's crucial that a dealer's advertising must include either the licensed name of the dealership or the appropriate brand or affiliation words that associate them with a certain car manufacturer.
In the automotive industry, an exclusive dealing agreement can have both legal and illegal implications, depending on its effects on competition.
It's legal when the agreement enhances competition—for example, Ford Motor Company establishing exclusive contracts to sell only to Ford dealers, which encourages competition among the various Ford dealerships.
However, such exclusivity becomes problematic and possibly illegal if it stifles competition, such as a scenario where an exclusive agreement would create a monopoly or restrict other dealers from the market.
Each case can be quite complex and is often subject to oversight by entities like the Federal Trade Commission (FTC) to ensure compliance with competition laws.