When Taco Bell requires its franchisees to purchase all their raw materials and supplies from the franchisor in order for the franchisor to maintain quality control, it is:

When Taco Bell requires its franchisees to purchase all their raw materials and supplies from the franchisor in order for the franchisor to maintain quality control, it is:


a. engaging in an illegal exclusive distribution agreement.

b. enforcing an illegal tying agreement.

c. employing a dual distribution agreement.

d. violating the franchisee's right to fair trade.

e. enforcing a tying agreement, which courts generally consider legal as long as there is sufficient proof that these arrangements are necessary to maintain quality control.


Answer: E


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