Under a Tying Contract

question 29

Multiple Choice

Under a tying contract,

• A)the price a buyer must pay for a good is tied to the size of his purchase.
• B)a customer agrees as a condition of buying a good to purchase one or more additional goods from the same seller.
• C)a firm agrees to allow members of its competitors' boards of directors to sit on its board.
• D)a firm agrees to pay an intermediary for having arranged a business deal for the firm.

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Definitions:

Design Fee

A charge levied for professional services related to the creation and planning of projects, products, or layouts.

Set-up Fees

Initial charges required to establish a service, account, or agreement before regular use or service can commence.

Commission Merchant

A person who performs services of buying and/or selling for a commission.

Delivery Charges

Fees applied for transporting items from the seller or warehouse to the buyer's location; synonymous with freight charge but rephrased.