If Hyvac Vacuum Cleaners requires that Hyvac bags be used for the warranty to be valid,under the Sherman Act,this is:

Question

Quizplus · Accepted Answer

This is considered a tying arrangement, where the sale of one product (the vacuum cleaner) is conditioned on the purchase of another product (the vacuum bags). Whether this is illegal per se or judged by the rule of reason depends on the economic power of Hyvac and the effect on interstate commerce. If Hyvac has significant market power and the tying arrangement affects a substantial amount of interstate commerce, it could be considered illegal. Otherwise, it might be evaluated under the rule of reason, which involves a more detailed analysis of its actual impact on competition.

If Hyvac Vacuum Cleaners Requires That Hyvac Bags Be Used