A Buyer May Be Compelled to Purchase by Specification When

question 9

Multiple Choice

A buyer may be compelled to purchase by specification when:

• A) a high degree of supplier expertise or skill is required and difficult to define.
• B) the internal user's preferences are impossible to overcome.
• C) a supplier holds a needed patent.
• D) an opportunity exists to purchase identical requirements from several sources.
• E) the buyer wants the supplier to decide how to make the most suitable product.

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Definitions:

Clayton Act

A U.S. antitrust law, enacted in 1914, aimed at promoting fair competition and preventing monopolies.

Illegal Cooperative Agreements

Illegal cooperative agreements refer to unlawful arrangements between competing businesses to fix prices, divide markets, or engage in other anti-competitive practices.

Trade Restraint

Any measure or policy that restricts international trade, including tariffs, quotas, and embargoes.

Predatory Pricing

is a competitive strategy where a company sets extremely low prices to eliminate competition and create a monopoly.