An Example of a Tying Arrangement Is

question 132

Multiple Choice

An example of a tying arrangement is

• A) a restaurant offering both Pepsi and Coca-Cola products.
• B) a car manufacturer installing expensive onboard GPS/navigation systems in all the cars it sells.
• C) a landlord offering free rent for the first month when a tenant signs a one-year lease.
• D) two companies competing on price.
• E) a coffee shop offering customers the option of having cream with their coffee for an extra 25 cents.

---

Definitions:

Perfection

In finance and law, the process of securing a security interest in collateral through legal documentation and registration.

First Claim

The priority right to make a demand or assert a right before others; often used in financial contexts, such as creditors having first claim on assets.

Purchase-Money Security Interest

A legal claim that allows a lender to repossess or foreclose on property if the borrower fails to repay a loan used to purchase the property.

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower fails to make required payments.