Farm Crops Corporation offers to sell its wheat substitute to Gluten-Free,Inc.,only if Gluten-Free agrees to buy all of the wheat substitute that it needs from Farm Crops,even though there are other sellers from whom Gluten-Free could buy.This is

Question

Farm Crops Corporation offers to sell its wheat substitute to Gluten-Free,Inc.,only if Gluten-Free agrees to buy all of the wheat substitute that it needs from Farm Crops,even though there are other sellers from whom Gluten-Free could buy.This is​

Quizplus · Accepted Answer

This is a tying arrangement where the seller is refusing to sell the wheat substitute to Gluten-Free unless they agree to also buy all of their requirements from Farm Crops. This can harm competition in the market and is illegal in many countries.

Farm Crops Corporation Offers to Sell Its Wheat Substitute to Gluten-Free,Inc.,only