It may be economically advantageous to both consumer and producer to enter into an incentive type contract in which the price paid for a product depends upon the outcome of an acceptance test. If no test is performed, a product of some minimum quality is produced and the consumer suffers a considerable penalty. The outcome of the test will reflect, to some degree, the quality of the product. If the consumer agrees to pay a premium dependent upon the outcome, the producer will be motivated to invest money in improving his product and both parties may expect to profit from the arrangement.