Which type of agreement requires the purchase of one product to buy another?

Study for the 75 Hour Broker Pre Licensing Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The correct answer is a tie-in agreement, which refers to a business arrangement requiring a buyer to purchase one product or service as a condition to purchasing another product or service. This type of agreement is commonly seen in situations where a company offers a product at a lower price but conditions that offer on the purchase of a related or additional item. For example, a software company may sell a program at a discount but require that the buyer also purchase technical support or accessories to complete the transaction.

Tie-in agreements are significant because they raise various legal and ethical questions regarding competition and consumer choice. They can sometimes lead to anti-competitive behavior, which is why they are closely monitored by regulatory agencies.

In contrast, a testate agreement pertains to a will and the distribution of assets after someone's death, rather than consumer transactions. A hybrid agreement combines elements of different types of contracts but does not specifically involve the connection of purchases. An exclusive agreement typically involves one party granting rights or privileges exclusively to another party, which does not necessarily relate to the purchase of a secondary product.

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