Reseller A reimburses Reseller B for all products A sells into Reseller B's defined territory

1. Profit Pass-Over Arrangement

Reseller A reimburses Reseller B for all products A sells into Reseller B's defined territory.

2. The Colgate Doctrine

This predecessor of the Robinson-Patman Act established the seller's right to sell, or not sell, to whomever it chooses.

3. Tying Clause

This sometimes illegal practice exists where a buyer can only buy product B if they buy product A.

4. Administered VMS

A vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties.

5. Arbitration

The process by which parties to a dispute submit their differences to the judgment of an impartial third person or group selected by mutual agreement.

6. Bulky Product

Any product that can not be handled with the customary material handling equipment used in that industry.

7. Buy-Back Clause

A part of a contract where Buyer is provided assurances Seller will repurchase slowing moving or dead inventory on some predetermined basis.

8. Cartel

A group of independent entities which regulates production, pricing, and marketing by members to maximize market power and limit competition.

9. Contractual VMS

A vertical marketing system in which independent firms at different levels of production and distribution join together through contracts to obtain more economies of scale for the benefit of all parties.

10. Corporate VMS

A corporate VMS combines successive stages of production and distribution under single ownership assuring channel leadership and control.