Which term describes the legal but unauthorized resale of goods?

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

Answer: (A)

Legal but unauthorized resale of genuine goods is described by the gray market. This term covers situations where products are authentic and legal to sell, but they move through unofficial distribution channels or cross-border routes without the manufacturer’s blessing. Buyers may access lower prices or hard-to-find items, but such sales often bypass authorized distributors and can affect warranty or after-sales support.

The other terms don’t fit as well: a black market involves illegal goods or illegal activity; the official market refers to authorized channels; and a parallel market is sometimes used as a synonym, but the standard term that most precisely means legal yet unauthorised resale is gray market.