If a seller requires an intermediary to purchase a supplementary product to qualify to purchase the primary product the intermediary wishes to buy, a ______________ is in place.

Question

Quizplus · Accepted Answer

This scenario describes a tying contract where the seller requires the intermediary to purchase a supplementary product (the tied product) in order to qualify to purchase the primary product (the tying product). Tying contracts are often considered anti-competitive and may be illegal under certain circumstances. Just-in-time inventory control systems and materials requirement planning are supply chain management techniques unrelated to this scenario. Exclusive dealing and exclusive territory refer to agreements where a seller restricts a buyer's ability to purchase from or sell to competing suppliers/customers, which is not the case here.

If a Seller Requires an Intermediary to Purchase a Supplementary