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) a tying arrangement, which will be closely scrutinized by the law.
B) no violation.
C) illegal per se .
D) a vertical customer restriction.

Question

Quizplus · Accepted Answer

A tying arrangement is when a seller requires the buyer to purchase a second product as a condition of buying a desired product. Under the Sherman Act, such arrangements are closely scrutinized because they can restrict competition and harm consumers.

If a Small Manufacturer of Vacuum Cleaners Requires the Buyer