If Crunchy Fries agrees to sell its frozen potato fries to a large grocery chain on the contractual condition that the grocery chain does not sell any of Crunchy Fries' competitors' frozen potato fries, this is an example of_____ .
A)an exclusive dealing contract
B)a horizontal contract
C)a requirements contract
D)a tying arrangement

Question

Quizplus · Accepted Answer

This is an example of an exclusive dealing contract, where one party agrees to only sell to the other party and the other party agrees to only buy from the first party.

If Crunchy Fries Agrees to Sell Its Frozen Potato Fries