Asked by Heath Gillette on May 18, 2024
Verified
Technoco,Inc. ,a manufacturer of computers and related equipment,has been requiring wholesalers and retailers who purchase computers from it to also purchase printers as a condition of buying computers.One of Technoco's customers has challenged the legality of this practice.Which of the following factors would weigh against the illegality of this practice?
A) Evidence that Technoco's computers are generally considered to be inferior to those of its competitors
B) Evidence that many other computer manufacturers will sell computers without requiring purchases of printers
C) Evidence that Technoco is a small company whose total printer sales in the period in question amounted to $19,000
D) Evidence that Technoco's computers are generally considered to be superior to those of its competitors
Printers
Devices that convert computer generated text and graphics into physical copies on various media, such as paper or fabric.
Illegality
The state of being illegal or not permitted by law.
- Evaluate the linkage between conduct that discourages market competition and statutes aimed at preventing unfair market dominance.
- Gain insight into the role of market power within the context of antitrust regulations.
Verified Answer
JP
Jonathan PierreMay 23, 2024
Final Answer :
C
Explanation :
Evidence that Technoco is a small company whose total printer sales in the period in question amounted to $19,000 indicates that Technoco's tying arrangements did not restrain a "not insubstantial" amount of commerce in the printer (tied product market).This evidence will confirm that Technoco's tying agreement has not violated Section 3 of the Clayton Act.
Learning Objectives
- Evaluate the linkage between conduct that discourages market competition and statutes aimed at preventing unfair market dominance.
- Gain insight into the role of market power within the context of antitrust regulations.