Suppose a manufacturer of artificial hips required any medical care provider to purchase a specific set of surgical tools along with each artificial hip. This would be an example of a _______.

Question

Quizplus · Accepted Answer

This scenario is an example of a tying contract, where the manufacturer is requiring the purchase of specific surgical tools with each artificial hip. An exclusive dealing contract would require the medical care provider to only purchase from that specific manufacturer, while a most favored nation clause would ensure that the medical care provider receives the best price available from the manufacturer. A price ceiling would limit the amount the manufacturer could charge for the artificial hip, which is not relevant in this scenario.

Suppose a Manufacturer of Artificial Hips Required Any Medical Care