The owner of B&K Inc., a cookie manufacturing company, entered into an agreement with Edwin, a retailer. According to the agreement, Edwin was not allowed to sell the cookies of B&K at a price lesser than $2 per pack. This is an example of a(n) _____.

Question

Quizplus · Accepted Answer

The agreement between B&K and Edwin is a form of vertical restraint of trade, which involves agreements or arrangements between firms at different levels of the supply chain to control or influence the prices or terms of trade. In this case, B&K is imposing a minimum price restriction on its retailer.

The Owner of B&K Inc