What term describes legal but unauthorized resale of goods?

• A. Black Market
• B. Gray Market
• C. Parallel Market
• D. Official Market

Answer: (B)

The concept being tested is the idea of authentic goods being resold through channels not approved by the manufacturer. This describes a gray market: the products themselves are genuine and legally obtained, but they’re sold outside the authorized distribution network. Because the goods are not counterfeit and the sale isn’t illegal in itself, it’s distinct from a black market, which involves illicit or counterfeit items, and from the official market, which uses approved distribution channels. The gray market often arises due to price differences or regional restrictions, and it can affect warranties or service because the manufacturer may limit coverage for items sold outside its authorized channels. That combination—legitimate product, unsanctioned sales channel—matches the term gray market.