- The benefit of entering into an exclusionary, or exclusive dealing, agreement is that each party is assured of an increase in its share of the market. Likewise, the business is assured its competitors will not have access to that same share of the market.
- A business who has entered into an exclusionary agreement can be at a disadvantage in a volatile market. A fluctuating market may signal the need for flexibility, but a business that has contracted to dealing exclusively with another party is bound by that agreement.
- Exclusionary agreements, by their nature, exclude competition and therefore, raise antitrust concerns. However, not all exclusionary agreements are illegal. A business seeking to enter into an exclusionary agreement should consult counsel to determine whether the agreement presents any antitrust issues.