Which of the Following Is an Example of a Tying

question 9

Multiple Choice

Which of the following is an example of a tying agreement?

• A) Jon refuses to buy office supplies from anyone but Bridget.
• B) In order to carry a highly successful organic cleaning compound, Nature's Survival Store has to carry a much less successful line of laundry detergent made by the same company.
• C) Traveler's Rest, a travel agency, agrees to buy its insurance needs from the Nathan Dean Insurance Agency if the agency agrees to let Traveler's Rest handle the owners' travel plans.
• D) A paper supply company agrees to give Harridan Industries a free case of paper towels for every dozen cases it purchases.
• E) A salesperson tells a contractor that its paint is mildew-resistant when it is not.

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Definitions:

Common Stock Account

An equity account on a company's balance sheet representing the amount of money that has been invested directly in the company by its shareholders in exchange for common stock.

$5 Par Value

A nominal or face value assigned to a share of stock, in this case, set at five dollars, used in certain financial calculations and legal paperwork.

$18 Per Share

A specific price value assigned to individual shares of stock, indicating the cost or value of a single share at a particular moment.

Treasury Stock

Shares that were once a part of the outstanding shares and have been repurchased by the company.