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

Question

Quizplus · Accepted Answer

This is considered a tying arrangement, where the sale of one product (the vacuum cleaner) is conditioned on the purchase of another product (the manufacturer's bags). Such arrangements are subject to close scrutiny under antitrust laws, particularly the Sherman Act, to determine if they unreasonably restrain trade or create a monopoly.

If a Small Manufacturer of Vacuum Cleaners Requires the Buyer