Asked by Victoria Nguyen on May 10, 2024
Verified
Suppose that you own a toy store and want to buy 100 talking robots. Your supplier will sell you the robots only if you also agree to buy 200 dolls. This is an illegal practice called
A) monopolistic.
B) a tying contract.
C) a cartel.
D) discriminatory.
Tying Contract
A sales agreement that requires the buyer to purchase another product or service, distinct from the product or service of interest.
- Understand and identify forbidden practices per antitrust rules, such as tied selling and monopolizing conduct.
Verified Answer
GS
Gurpal SidhuMay 12, 2024
Final Answer :
B
Explanation :
A tying contract is an agreement where the seller conditions the sale of one product (the tying product) on the buyer's agreement to purchase a different product (the tied product). In this scenario, the requirement to buy 200 dolls in order to purchase 100 talking robots is an example of a tying contract.
Learning Objectives
- Understand and identify forbidden practices per antitrust rules, such as tied selling and monopolizing conduct.