Under a tying contract,
A)the price a buyer must pay for a good is tied to the size of his or her purchase.
B)a customer agrees as a condition of buying a good to purchase one or more additional goods from the same seller.
C)a firm agrees to allow members of its competitors' boards of directors to sit on its board.
D)a firm agrees to pay an intermediary for having arranged a business deal for the firm.

Question

Quizplus · Accepted Answer

A tying contract occurs when a customer is required to purchase one product only if they agree to purchase another product from the same seller. This is commonly used to force customers to buy products they may not want or need, which can be anticompetitive. A and C are incorrect, as they do not accurately describe tying contracts. D is incorrect, as it describes a payment for a business service and not a tying contract.

Under a Tying Contract