Play It Again Sam is a producer of high-end CD burners. it requires customers to purchase...

Play It Again Sam is a producer of high-end CD burners. it requires customers to purchase high-quality blank CDs from it in order to maintain warranty agreements. this is an example of a :

a. joint product.

b. transfer price.

c. tying contract.

d. two-part contract.

e. bundle

Expert Solution

Option C.

Given that the Play it Again Sam is a producer of high end CD burners and it requires customer's to purchase high quantity blank CDs from it in order to maintain warranty agreements.This is an example of a tying Contract.
A tying Contract is a type of contractual agreement, which requires a consumer to purchase a certain product if it needs another service or product.
If consumers want to maintain warranty agreements then they will have to purchase a high quality black CDs from the producer. Hence is a tying Contract.

Rahul Sunny answered 2 years ago

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