Asked by Kennedy Kaiser on May 17, 2024
Verified
Best View Corporation offers to sell LED screens to Computer & Video, Inc., only if the buyer also agrees to buy the seller's servicing of its products. This is
A) an exclusive-dealing contract.
B) a tying arrangement.
C) price discrimination.
D) business acumen.
Tying Arrangement
A commercial agreement requiring buyers to purchase an additional product or service when buying a desired product or service.
LED Screens
Displays that utilize Light Emitting Diodes to produce images, widely used in televisions, computer monitors, and digital signage.
Servicing
The process of managing and collecting payments on a loan, mortgage, or other financial debt.
- Identify the contrast between allowable and non-allowable commercial practices, particularly in the case of bundling arrangements and exclusive sales contracts.
Verified Answer
CT
Carlos ThomasMay 18, 2024
Final Answer :
B
Explanation :
A tying arrangement occurs when a seller requires a buyer to purchase a second product or service in addition to the primary product or service the buyer wants. In this case, Best View Corporation is requiring Computer & Video, Inc. to also agree to buy the servicing of its products in addition to the LED screens, which constitutes a tying arrangement.
Learning Objectives
- Identify the contrast between allowable and non-allowable commercial practices, particularly in the case of bundling arrangements and exclusive sales contracts.