A most-favored-customer clause:
A) is a commitment but not a threat.
B) is a threat but not a commitment.
C) is both a threat and a commitment.
D) is neither a threat nor a commitment.
E) could be either a threat or a commitment depending on the terms.

Question

Quizplus · Accepted Answer

A most-favored-customer clause is both a threat and a commitment because it promises the customer the best deal available, which commits the seller to offering this customer any better terms given to others, and it threatens potential action if the seller does not uphold this promise.

A Most-Favored-Customer Clause