Asked by Shaylie Pickrell on Jul 14, 2024
Verified
Suppose Slow Ketchup requires that, as a condition of purchase, all restaurants using its product must buy and make available its new sales product. This arrangement is an example of
A) price-fixing.
B) an interlocking directive.
C) a tying contract.
D) price discrimination.
Tying Contract
A requirement imposed by a seller that a buyer purchase another (or other) of its products as a condition for buying a desired product; a practice forbidden by the Clayton Act.
Sales Product
A good or service offered for sale by a business to customers in a market.
- Discern practices that could infringe upon antitrust legislation and separate them from legally sanctioned behaviors.
Verified Answer
EP
Erika PedrazaJul 20, 2024
Final Answer :
C
Explanation :
This arrangement is an example of a tying contract, where the sale of one product (the "tying" product) is conditioned on the purchase of another product (the "tied" product).
Learning Objectives
- Discern practices that could infringe upon antitrust legislation and separate them from legally sanctioned behaviors.