Passive selling, in the context of selective distribution and its associated practices, refers to a type of commercial transaction carried out by a distributor, often a franchisee, without any prior solicitation, targeted advertising, or prospecting. This type of sale occurs spontaneously, outside the distributor’s exclusive territory. A sale is considered passive when a buyer directly contacts a point of sale to inquire about product availability, without any prior contact from the salesperson. The distinction between passive and active selling is particularly important because a franchisor cannot prevent a franchisee from making a passive sale to a customer located within another franchisee’s exclusive territory.