Page "Collective business system" Paragraph 3

Trade associations are non-profit organizations in which the individual members are companies or individuals engaged in a common business pursuit.

Competitors join together to create a platform format in which they deal with common problems of their industry.

Any applicant meeting the standards of the association must be accepted as a member.

Anti-trust law prohibits a member trade association from denying an otherwise qualified applicant's membership based upon a geographical proximity to an existing member.

Trade associations commonly offer their members educational programs, the opportunity to come together at meetings to discuss common problems, and marketing materials designed to be imprinted by each member with its relevant information.

Trade associations also offer elective group purchasing plans.

The trade association bears no credit risk in these transactions but instead, provides chosen vendors with access to a large body of member customers.

Because the trade association does not pledge its credit, the vendor must rely upon the credit worthiness of each purchaser.