CapCo,a manufacturer of baseball cap machinery,insists that Hats-R-Us,a firm that leases the machinery,purchase a service contract from CapCo to maintain the machinery.Which term best describes this arrangement?

Question

Quizplus · Accepted Answer

Tying is the practice of requiring a customer to purchase one product (in this case the service contract) in order to obtain another product (the machinery lease). CapCo is insisting that Hats-R-Us purchase the service contract in order to lease the machinery, which is an example of tying.

CapCo,a Manufacturer of Baseball Cap Machinery,insists That Hats-R-Us,a Firm That