Asked by Ameer Salem on May 08, 2024
Verified
If a small manufacturer of vacuum cleaners requires the buyer to agree to purchase only that manufacturer's bags as a condition of the sales of its cleaners, under the Sherman Act this is:
A) illegal per se .
B) a tying arrangement, which will be closely scrutinized by the law.
C) a vertical customer restriction.
D) no violation.
Tying Arrangement
A business practice where a seller requires the purchase of a secondary product or service in addition to a primary product or service.
Vacuum Cleaners
Electrical appliances used for cleaning floors and other surfaces by suctioning up dust and dirt.
Sherman Act
A landmark federal statute in the United States antitrust law passed by Congress in 1890 which prohibits monopolistic practices and promotes competition.
- Discriminate between different kinds of antitrust offenses, including but not limited to, horizontal and vertical barriers, dominance by monopolies, and tying contracts.
Verified Answer
Learning Objectives
- Discriminate between different kinds of antitrust offenses, including but not limited to, horizontal and vertical barriers, dominance by monopolies, and tying contracts.
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