Which of the following describes a tying contract?
A) The seller of one product requires the buyer to purchase some other product(s).
B) One firm buys the stock of a competing firm.
C) The directors of one company serve on the board of directors of another company in the same industry.
D) An agreement between a manufacturer and a retailer based on the condition that the retailer is not to carry any rival products of the manufacturer.

Question

Quizplus · Accepted Answer

A tying contract involves a situation where the seller of a product (the "tying" product) requires the buyer to also purchase another, distinct product (the "tied" product). This practice can be used to leverage market power from one product to another, potentially raising antitrust concerns.

Which of the Following Describes a Tying Contract