Until federal laws and regulations were clarified to cover such cases, audio electronic component manufacturers required that retailers who wanted to carry their amplifiers also carry their speakers and sell their customers a "system" of same-brand components.This distribution strategy, called a __________, may be illegal.

Question

Quizplus · Accepted Answer

The distribution strategy described in the scenario is known as a "tying arrangement," where a seller requires a buyer to purchase one product only on the condition that the buyer also purchases an additional product. While tying arrangements are not necessarily illegal, they may violate antitrust laws if they are used to stifle competition or harm consumers.

Until Federal Laws and Regulations Were Clarified to Cover Such