Effective distribution management can be a source of increased efficiency and profitability for many manufacturers. The ability to modify channels of distribution to cope with changing market conditions is essential to effective marketing management yet modification may be beset with problems. The elimination or replacement of current dealers by a manufacturer, usually termed a “refusal to deal,” often raises antitrust allegations. Recent federal cases illuminating the courts’ reasoning regarding the legality of such refusals to deal are discussed and recommendations for manufacturers to adopt when making channels changes to minimize antitrust liability are suggested.
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