Final answer:
An exclusive or dual agency dealing agreement between a licensee and seller is a tricky balance between legality and competition, where exclusive arrangements can be legal if they foster competition but illegal if they stifle it unduly.
Step-by-step explanation:
When a licensee represents a seller under an exclusive or dual agency, they are involved in a type of agreement that could potentially have impacts on market competition. An exclusive dealing agreement can be considered legal if it promotes competition between dealers, such as when automobile manufacturers like Ford Motor Company and General Motors sell their vehicles only through their respective dealerships. This type of arrangement can be beneficial in encouraging brand loyalty and dealer investment. However, these agreements can also become illegal if they restrict competition substantially. An example of such a detrimental effect would be if a single large retailer secured the exclusive rights to distribute a wide range of electronics like televisions, computers, and audio equipment exclusively, which would effectively bar other retailers from competing in the marketplace for these products.