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

Tie-in sales, where the purchase of one product or service is required in order to purchase another, are not per se illegal under antitrust laws. Their legality often depends on the context, including market power and the effect on competition. The hospital's requirement could be seen as part of its service model, aiming to ensure quality or manage resources efficiently. Without more information on market power or anti-competitive effects, it's difficult to categorically classify the hospital's actions under the provided options. Thus, none of the other choices accurately describe the legal status without further analysis.

A Hospital Requires That Patients Use the Food Services Provided