If Cheesy Cheese agrees to sell its cheese to Fresh Pizza on the contractual condition that Fresh Pizza purchases 100 percent of the cheese needed to make its pizzas from Cheesy Cheese, this is an example of_____ .
A)a tying arrangement
B)an exclusive dealing contract
C)a horizontal contract
D)a requirements contract

Question

Quizplus · Accepted Answer

This is an example of a requirements contract, where one party agrees to supply all of a certain product to the other party in exchange for a promise from the other party to purchase all of its needed quantity of the same product from the first party.

If Cheesy Cheese Agrees to Sell Its Cheese to Fresh