Reliable Corp.owns the nationwide chain of Reliable Auto Repair shops.Although Reliable has the single largest share in the nationwide auto repair market,the intensely competitive nature of this market means that Reliable's share is only 8 percent.In a lawsuit filed against Reliable,the plaintiff alleges that Reliable regularly agrees to provide automobile repairs only if the customer whose car needs repairs also agrees to purchase a certain paste wax manufactured by Reliable.The plaintiff asserts that this practice violates Section 3 of the Clayton Act.Which of the following is the strongest argument for Reliable to avoid liability?

Question

Quizplus · Accepted Answer

A major limitation of Section 3 of the Clayton Act is that it applies only to tying agreements and exclusive dealing contracts involving the leasing or sale of commodities.Since the plaintiff has alleged that Reliable's tying agreement (auto repair only when customers also buy a paste manufactured by Reliable)has violated Section 3 of the Clayton Act,Reliable's strongest argument in an effort to avoid liability would be that auto repairs are not a commodity.