The distributive property is illustrated using the example of a truck driver delivering merchandise from a distribution center to multiple Walmart stores on their route. It states that to distribute a quantity, you multiply it by each term being distributed over. For example, 4(x + 6) can be written as 4x + 24, as the 4 is being distributed over (multiplied by) both the x and 6 terms. Following this property ensures the truck driver delivers merchandise to all stores on their route.