Suppose Slow Ketchup requires that, as a condition of purchase, all restaurants using its product must buy and make available its new sales product. This arrangement is an example of
A) price-fixing.
B) an interlocking directive.
C) a tying contract.
D) price discrimination.

Question

Quizplus · Accepted Answer

This arrangement is an example of a tying contract, where the sale of one product is tied to the sale of another product. In this case, the sale of Slow Ketchup's new product is tied to the purchase of their ketchup product. This is often used to leverage the sale of less popular products by requiring customers to buy a more popular product as well.

Suppose Slow Ketchup Requires That, as a Condition of Purchase