Under a tying contract,
A)the price a buyer must pay for a good is tied to the size of his 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 seller makes the sale of a product or service conditional on the buyer's purchase of another product or service from the same seller. Therefore, choice B is the correct answer. A is incorrect as it describes quantity discounts, which are not the same as a tying contract. C is incorrect as it describes interlocking directorates. D is incorrect as it describes a brokerage fee.

Under a Tying Contract