A retail store enters into an agreement to buy cheese from a large supplier.The retail store is bound by this agreement and cannot buy cheese from local dairy farms although its prices are lower.This is an example of:
A)exclusive dealing.
B)refusal to deal.
C)predatory pricing.
D)referral selling.
E)pyramid selling.

Question

Quizplus · Accepted Answer

This is an example of exclusive dealing, where the retail store agrees to purchase all or most of its supplies from a single supplier, thereby limiting competition from other suppliers. The retail store is bound by the agreement and cannot buy cheese from local dairy farms, even if their prices are lower.

A Retail Store Enters into an Agreement to Buy Cheese