[Scuba Gear] Katie is a popular manufacturer of scuba gear. Before she allows a store to carry her line of scuba gear, she requires that the store owner agree that her line is the only line of scuba gear the store will carry. She also requires that if a store carries her line of scuba gear, it must also carry her line of wet suits. Sales of other manufacturer's gear and wet suits have begun a steady decline. Katie is accused of violating antitrust laws. However, Katie replies that she is simply conducting good business practices. Lara, the president of Deep Blue Scuba, calls Katie and tells her that she is prepared to bring suit against Katie for antitrust violations. Katie tells Lara that although she is not in violation, only the government could take action against her, and the government is way too busy to get involved in a dispute over scuba gear.
-Katie's requirement that before she will sell scuba gear to a business, the business must carry her line of wet suits is a ________ arrangement.

Question

Quizplus · Accepted Answer

Katie's requirement constitutes a tying arrangement, where the sale of one product (scuba gear) is conditioned on the purchase of another product (wet suits). This can be considered an antitrust issue if it restricts competition unfairly.

[Scuba Gear] Katie Is a Popular Manufacturer of Scuba Gear