If a firm has a tying agreement with a distributor which substantially lessens competition, then it is likely to be in violation of the:
A) Clayton Act.
B) Robinson-Patman Act.
C) Sherman Antitrust Act.
D) Federal Trade Commission Act.
E) Interstate Commerce Act.

Question

Quizplus · Accepted Answer

Tying agreements where one product is tied to another product for sale, can be seen as an antitrust violation and a violation of the Clayton Act. The act prevents certain mergers and acquisitions, as well as business practices that can limit competition.

If a Firm Has a Tying Agreement with a Distributor