Four companies quoted for and supplied paints to a massive housing reconstruction program.There were 200 contracts distributed over 10 years.Each company won 25 percent of the contract each year.This is an example of:
A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral selling.
E)pyramid selling.

Question

Quizplus · Accepted Answer

This scenario is an example of bid rigging, which is where multiple companies collude to manipulate the bidding process in order to ensure that each company wins a certain percentage of the contracts. In this case, each company wins 25% of the contracts each year, suggesting that they have divided the contracts amongst themselves rather than competing fairly for each individual contract.

Four Companies Quoted for and Supplied Paints to a Massive