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As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of?

a) Discrimination
b) Violating antitrust laws
c) Tying arrangement
d) Usury

1 Answer

3 votes

Final answer:

The bank is guilty of a tying arrangement, which is a violation of antitrust laws.

Step-by-step explanation:

The bank is guilty of a tying arrangement. A tying arrangement occurs when a seller requires a buyer to purchase an additional product or service as a condition of the main purchase. In this case, the bank is requiring the borrower to purchase credit insurance from a specific company in order to obtain the loan. This is considered a violation of antitrust laws.

User Deng  Zhebin
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