Asked by Lindsey Norberg on May 21, 2024
Verified
Tying agreements
A) establish common boards of directors for previously competing firms.
B) obligate a purchaser of product X to also buy product Y from the same seller.
C) allow manufacturers to specify the retail prices of their products.
D) prohibit firms from selling their products outside of specified geographic areas.
Tying Agreements
Contracts where the seller requires the buyer to purchase an additional, often related, product or service as a condition of buying the desired product.
Product X
A placeholder term used to represent any specific good or service within an economic or marketing context.
- Detect operations that might contravene competition laws and differentiate such operations from those that are legally allowed.
Verified Answer
MK
Michael KieblesMay 22, 2024
Final Answer :
B
Explanation :
Tying agreements are when a seller requires a buyer to purchase a second product (Product Y) as a condition of purchasing the first product (Product X). This practice can raise antitrust concerns if it reduces competition.
Learning Objectives
- Detect operations that might contravene competition laws and differentiate such operations from those that are legally allowed.