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What are some disadvantages of a manufacturer negotiating a deal with a big box store,...

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yacel0762 | (Level 1) Valedictorian

Posted May 19, 2013 at 7:22 PM via web

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What are some disadvantages of a manufacturer negotiating a deal with a big box store, new customer, to allow small local stores, longtime customers, to also carry a limited quantity of the line versus giving the big box store exclusivity to sell the line and violating antitrust laws.

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Kay Morse | College Teacher | (Level 1) Senior Educator

Posted May 21, 2013 at 10:58 PM (Answer #1)

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The major disadvantage of doing anything that violates antitrust law is that it violates antitrust law, whether the participants in deals are large box stores or single owner stores. In reality, large box stores have so much purchasing power and purchasing supply line strength that special antitrust law deals are not necessary for them and only jeopardize the others in the deal.

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