Final answer:
An exclusive right to sell listing agreement is an exclusive dealing agreement that is legal when it encourages dealer competition but can be illegal if it restricts competition broadly.
Step-by-step explanation:
When an exclusive right to sell listing agreement is signed, it typically indicates that an exclusive dealing agreement exists between a property owner and a real estate agent or broker, giving that agent or broker the exclusive right to sell the property and earn a commission for the sale. In the broader business context, exclusive dealing agreements between manufacturers and dealers can be both legal and illegal, depending on their effect on competition. It's legal when the intent is to promote dealer competition, like with automobile manufacturers designating certain dealers as exclusive sellers of their cars. However, if an agreement restricts competition, such as a retailer obtaining sole distribution rights for a wide range of products thus impacting other retailers' ability to compete, it can be deemed illegal.