Final answer:
An exclusive dealing contract is a type of contract where a seller is obliged to sell its products exclusively to a buyer. The contract between Joshua and Gram Corp. can be classified as an exclusive dealing contract. This means that Joshua can only sell his oranges to Gram Corp.
option a is the correct
Step-by-step explanation:
An exclusive dealing contract is a type of contract between a manufacturer or supplier and a buyer that requires the seller to sell its products exclusively to the buyer. In this scenario, the contract between Joshua and Gram Corp. can be classified as an exclusive dealing contract. This means that Joshua is obliged to sell his oranges only to Gram Corp and cannot sell them to any other food processing plant.
Exclusive dealing contracts can have both legal and anticompetitive effects. They can be legal if they encourage competition between buyers. For example, if a car manufacturer sells its cars exclusively to authorized dealers of their brand, it allows different dealers to compete with each other. However, if such exclusivity limits competition and creates a monopoly for a single buyer, it can have anticompetitive effects.
In this case, the exclusive dealing contract between Joshua and Gram Corp. does limit competition as Joshua can only sell his oranges to Gram Corp. Other food processing plants do not have the opportunity to purchase oranges from Joshua. This can be seen as an anticompetitive effect, favoring Gram Corp over other potential buyers.