Question

Cathy's Coaster Company uses cork in all of the protective drink coasters that it manufactures. If Cathy's enters into an agreement with a cork exporter from Portugal to purchase all of the cork it needs to produce its products, this would be:

Answer 1

Answer:

a requirements contract.

Explanation:

A requirements contract is made between a company and one of its suppliers or vendors. In that contract, the supplier or vendor agrees to supply a certain amount of goods or services that the company requires, in exchange the company will only purchase the goods or services from that specific supplier or vendor.