Tying arrangements
A) require retailers to charge a specific price determined by the manufacturer.
B) require a buyer to purchase one product in order to buy another, different product.
C) are illegal under the Sherman Act.
D) always allow a firm to increase its market power.
E) are always illegal under the Clayton Act.

Question

Quizplus · Accepted Answer

Tying arrangements require a buyer to purchase one product in order to buy another, different product. They are not always illegal, but can be if they create anti-competitive effects. The legality of tying arrangements is determined on a case-by-case basis.

Tying Arrangements