Question

Vino Tinto Inc. sells a variety of wines but specializes in selling premium red wine. If the company enters into an agreement with a winery in Spain to purchase all the red wine the winery produces, this would be a(n) _____.

Answer 1

Answer:

output contract

Explanation:

An output contract is an example of a contract where an agreement is reached between the seller and the buyer that, all the production seller will be bought by the buyer. This means that, an agreement is reached that all the item that the seller is capable of producing will be entirely bought by the buyer.

In this case, the entire premium red wines produced by the Vino Tinto Inc. will be bought by the winery in Spain.