Anderson's Business Law and the Legal Environment 20th Edition by David Twomey,Marianne Jennings

تمرين 9

In 1997, the Federal Trade Commission (FTC) issued a cease-and-desist order against Toys "R" Us. The order required Toys "R" Us to stop what the FTC calls its "blacklisting" practices. The FTC ruled that Toys "R" Us had forced large toy manufacturers, such as Mattel and Hasbro, to withhold their products from such discount warehouse stores as Sam's Club and Costco. Toys "R" Us allegedly threatened not to carry these companies' products if they were also sold at the discount warehouse chains. Mattel's Barbie doll is one toy that Toys "R" Us carried that the discount warehouses were not permitted to carry. Costco CEO James Sinegal said, "You could fill Madison Square Garden with the people who don't want to sell to us." Are these types of sales agreements ethical? Is it fair for Toys "R" Us to insist on these arrangements? How do you think these arrangements would affect price?