Joshua owns orange groves.He enters into a contract with the local food processing plant,Gram Corp.,which stipulates that he will sell oranges only to Gram.In this scenario,the contract between Joshua and Gram Corp.is known as a(n)______.
A) instalment contract
B) exclusive dealing contract
C) reciprocal dealing contract
D) tying contract
E) franchise contract

Question

Quizplus · Accepted Answer

In this scenario, the contract between Joshua and Gram Corp. is known as an exclusive dealing contract. An exclusive dealing contract contains a provision that one party or the other (buyer or seller) will deal only with the other party. As Joshua exclusively sells his oranges to Gram, he has an exclusive dealing contract with it.

Joshua Owns Orange Groves