Question

The management of a rental building faces a rent control situation, where it cannot charge more than $400 a month in rent on the apartment. The management knows that the apartments are high in demand and renters would be willing to be $1000 per month for them. The management decides to offer the controlled rent, rents furniture to its tenants, but successfully bars delivery from competing furniture stores. This is an example of Fraud Bundling Exclusion Tying

Answer 1

Bundling

Step-by-step explanation:

Bundling in property rent occurs when a property owner offers rent of property with some other service that is considered service rendered to occupants of the building.

The additional service is not considered as part of rent expense.

I'm the given scenario the owner of the renting building is offering rent of property along with rent of furniture from the company as a package of $1,000.

The rent still remains $400 while the extra cost is for furniture rent.