Question

A local petrol dealer made an agreement to purchase petroleum from only one petroleum supplier. The petrol dealer was forced into the agreement because the petroleum supplier refused to do business with the dealer unless he agreed to source petroleum solely from that supplier. This is an example of?

Answer 1

Answer:

Single source procurement agreement

Explanation:

Single source purchasing often results when a buyer or distributor purchases from only one selected supplier, even though there are other suppliers that provide similar products.

In this scenario the petrol dealer was forced into the agreement likely because of costs benefits to be derived from the petroleum supplier.