Final answer:
The arrangement in which one party allows another to sell its products and use its name is known as a franchise. Franchises involve payment of initial and ongoing fees. Exclusive dealing agreements between manufacturers and dealers can be both legal and illegal, depending on their impact on competition.
Step-by-step explanation:
When one party to an agreement grants the right to sell its products and use its name to another party, this arrangement is referred to as a franchise. A franchise involves a franchisor providing the franchisee with the right to operate a business using the franchisor's brand and business model.
The franchisee typically pays a franchise fee along with ongoing royalty fees. Exclusive dealing agreements between manufacturers and dealers may be legal if they promote competition, such as allowing only authorized dealers to sell certain products. However, they can limit competition if they inadvertently create monopolies, like if a single retailer gains exclusive rights to distribute products from various companies, preventing other retailers from competing.