What is a tie-in sale? How might it reduce competition and when might it be acceptable?
Antitrust Law in the United States,
The US government has been trying to ensure fair competition in business since the Sherman Act of 1890. Later there was the Clayton Act (1914) and the Robinson-Patman Act (1936). Robinson-Patman specifically disallowed tying arrangements, defined as a sellers' requirement that two products be bought together.
Answer and Explanation:
Tying arrangements are illegal under these conditions:
- the sale went across state lines
- the sale had to be the same or a very similar product
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Learn more about this topic:
from Business Strategy: Help & ReviewChapter 6 / Lesson 34