What contractual arrangement sets a minimum selling price for distributors or retailers?

The correct answer is resale price maintenance. This contractual arrangement allows manufacturers to set a minimum price that retailers or distributors must adhere to when selling their products. The intent behind this practice is to maintain a certain level of profitability for the manufacturer and ensure brand perception is not diluted by overly discounted retail prices. By establishing this minimum price, manufacturers can protect their products' market value and sustain brand equity, which can be vital for competitive positioning in the marketplace.

Resale price maintenance plays an important role in certain industries where maintaining price integrity is crucial due to the perceived value of the product. It also helps to ensure that retailers do not engage in destructive price competition that could harm the brand's reputation and profitability in the long run.

While options like price fixing and minimum advertised price relate to pricing strategies, they do not specifically encapsulate the contractual aspect of mandating a minimum selling price set by the manufacturer for retailers or distributors. Price fixing often involves discussions among competitors to set prices, which can lead to legal issues, while minimum advertised price typically refers to a stipulation on how low a retailer can advertise a product without necessarily mandating the selling price.