Vertical Agreements

Vertical agreements refer to arrangements between businesses that operate at different levels of the supply chain, such as manufacturers and retailers. These agreements can include terms on pricing, delivery, and sales practices. While they can help ensure quality and consistency, they can also raise legal concerns if they restrict competition. For instance, if a manufacturer requires retailers to sell products at a specific price, it may limit consumer choice and lead to higher prices. Regulatory bodies monitor such agreements to balance business interests with fair competition in the marketplace.