Asked by Ameer Salem on May 08, 2024

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Verified

If a small manufacturer of vacuum cleaners requires the buyer to agree to purchase only that manufacturer's bags as a condition of the sales of its cleaners, under the Sherman Act this is:

A) illegal per se .
B) a tying arrangement, which will be closely scrutinized by the law.
C) a vertical customer restriction.
D) no violation.

Tying Arrangement

A business practice where a seller requires the purchase of a secondary product or service in addition to a primary product or service.

Vacuum Cleaners

Electrical appliances used for cleaning floors and other surfaces by suctioning up dust and dirt.

Sherman Act

A landmark federal statute in the United States antitrust law passed by Congress in 1890 which prohibits monopolistic practices and promotes competition.

  • Discriminate between different kinds of antitrust offenses, including but not limited to, horizontal and vertical barriers, dominance by monopolies, and tying contracts.
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Verified Answer

BH
Brandon HayesMay 14, 2024
Final Answer :
B
Explanation :
This is considered a tying arrangement, where the sale of one product (the vacuum cleaner) is conditioned on the purchase of another product (the manufacturer's bags). Such arrangements are subject to close scrutiny under antitrust laws, particularly the Sherman Act, to determine if they unreasonably restrain trade or create a monopoly.