Legal Environment of Business 8th Edition by Henry Cheeseman

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Tying Arrangement Mercedes-Benz of North America (MBNA) was the exclusive franchiser of Mercedes-Benz dealerships in the United States. MBNA's franchise agreements required each dealer to establish a customer service department for the repair of Mercedes-Benz automobiles and required dealers to purchase Mercedes-Benz replacement parts from MBNA. At least eight independent wholesale distributors, including Metrix Warehouse, Inc. (Metrix), sold replacement parts for Mercedes-Benz automobiles. Because they were precluded from selling parts to Mercedes-Benz dealers, these parts distributors sold their replacement parts to independent garages that specialized in the repair of Mercedes-Benz automobiles. Evidence showed that Metrix sold replacement parts for Mercedes-Benz automobiles of equal quality and at a lower price than those sold by MBNA. Metrix sued MBNA, alleging a tying arrangement, in violation of Section 1 of the Sherman Act. Who wins? Metrix Warehouse, Inc. v. Mercedes-Benz of North America, Inc., 828 F.2d 1033, Web 1987 U.S. App. Lexis 12341 (United States Court of Appeals for the Fourth Circuit)