If Happy Cows contractually requires distributors who purchase Happy Cows' milk to also purchase Happy Cows' cream, this is an example of_____ .
A)territorial confinement
B)a requirements contract
C)a tying arrangement
D)exclusive dealing

Question

Quizplus · Accepted Answer

A tying arrangement occurs when a seller requires the buyer to purchase another product or service as a condition of buying the desired product or service. In this case, Happy Cows is requiring distributors to purchase cream as a condition of purchasing their milk, which is an example of a tying arrangement.

If Happy Cows Contractually Requires Distributors Who Purchase Happy Cows