NewShine Floor Co. manufactures floor mats. It has agreed to buy all of its light bulbs and fixtures from Luminous Lighting if Luminous will agree to buy and use NewShine safety mats in its factory. This is an example of:
A) reciprocity.
B) tie-in sales.
C) price discrimination.
D) a Green River dealership.
E) an exclusive kickback.

Question

Quizplus · Accepted Answer

This is an example of reciprocity, where two companies agree to purchase each other's products or services. This mutual agreement benefits both parties by ensuring a steady demand for their products.