A hospital requires that patients use the food services provided by one firm with which the hospital contracts. Pizza Hut wants to sell its food to patients in the hospital too, but the hospital refuses. Pizza Hut sues the hospital because of the tie-in between hospital stays and food service. The Supreme Court will probably hold the hospital's rule is:

Question

Quizplus · Accepted Answer

Under a rule of reason analysis, the tie-in between hospital stays and food service is not seen to injure competition, and therefore it is legal. The hospital can argue that it has a legitimate reason for its policy, such as ensuring high-quality and safe food for its patients. As long as the hospital can show that its policy is reasonable and does not harm competition, Pizza Hut's claim is not likely to succeed.

A Hospital Requires That Patients Use the Food Services Provided