If a seller requires an intermediary to purchase a supplementary product to qualify to purchase the primary product the intermediary wishes to buy,a(n)______________ is in place.
A)Just-in-time (JIT) inventory control system
B)Materials requirement planning (MRP)
C)Exclusive dealing
D)Exclusive territory
E)Tying contract

Question

Quizplus · Accepted Answer

If a seller requires an intermediary to purchase a supplementary product to qualify to purchase the primary product the intermediary wishes to buy, a tying contract is in place. Example: "You can buy my printer, but to do so you must sign a contract to by my ink"-thus, the products are "tied together" as terms of sale. Tying contracts are illegal, but historically it has often been difficult to prove whether an agreement is or isn't a tying contract in a court of law.

If a Seller Requires an Intermediary to Purchase a Supplementary