How is the gray market often characterized?

The gray market is typically characterized by the sale of legitimate goods through unauthorized channels, which is what makes option B the correct choice. These goods are often genuine products but are sold without the consent of the original manufacturer or through the intended distribution networks. As a result, while the products are not illegal, their distribution bypasses standard retail processes, leading to potential issues with warranties, customer service, and brand integrity.

The gray market may include a variety of products, not limited to any specific category, which distinguishes it from the misconception that it only involves illegal goods or lower quality products. Moreover, gray market items can indeed be high-quality and genuine but are often sold at a lower price due to different market dynamics or a lack of authorized support from the manufacturer. Hence, recognition of this distinct market helps businesses and consumers navigate sales practices and understand the implications of purchasing from gray market sources.