A tying contract may be legal if:
A) it accompanies a refusal to deal.
B) a profit-maximization pricing strategy is being used.
C) a new company is trying to enter the market.
D) the involved product is in the decline stage of its product life cycle.
E) an exclusive dealer for a company's entire product line is prohibited from carrying competing products.

Question

Quizplus · Accepted Answer

Tying contracts can be legal if a new company is using them as a strategy to enter the market. This can help the new company to establish itself by ensuring that its products are sold or used alongside more established products, thereby gaining visibility and acceptance in the market.

A Tying Contract May Be Legal If