When Taco Bell requires its franchisees to purchase all their raw materials and supplies from the franchisor in order for the franchisor to maintain quality control,it is:
A) engaging in an illegal exclusive distribution agreement.
B) enforcing an illegal tying agreement.
C) employing a dual distribution agreement.
D) violating the franchisee's right to fair trade.
E) enforcing a tying agreement, which courts generally consider legal as long as there is sufficient proof that these arrangements are necessary to maintain quality control.
Correct Answer:
Verified
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