Explanation:

The “Condition Met” field on a Price Rule has these options:
- All → All Price Conditions must be true (logical AND).
- Any → Any Price Condition can be true (logical OR).
- Custom → Allows complex logic using parentheses and combinations of AND/OR, e.g. (1 AND 2) OR 3.

Why C is Correct:
If your Price Rule has 3 or more conditions and you want logic like (Condition 1 AND Condition 2) OR Condition 3, you must choose Condition Met = Custom and enter the logic as (1 AND 2) OR 3. That’s why C is correct.

❌ Why Others Are Incorrect:
A. One or more Price Condition records use a formula that references a non-CPQ object field.
→ Incorrect. Using a formula doesn’t force you to choose Custom. Condition Met logic is purely about how conditions combine, not about what objects they reference.

B. One or more Price Condition records have a lookup to a Summary Variable.
→ Incorrect. That’s normal in CPQ and you can still use All or Any. Custom is only needed for complex logical groupings.

D. The Price Rule uses a custom lookup object to store key-value pairs for price Conditions.
→ Incorrect. This has nothing to do with Condition Met. The logic is about combining Price Conditions, not where you store key-values.

✅ Example:
Suppose your Price Rule has:
- Condition 1 → Product Family = “Widgets”
- Condition 2 → Quantity > 10
- Condition 3 → Account Type = “VIP”
And your logic should be (1 AND 2) OR 3 → this requires Condition Met = Custom.

✅ Bottom line:
Use Condition Met = Custom when you have mixed AND/OR logic, e.g. (1 AND 2) OR 3.

Correct answer: C. The Price Rule uses a combination of AND OR logic evaluating three or more Price Conditions.