Asked by Jasmine Jackson on May 22, 2024
Verified
The legality of a tying arrangement depends in part on the agreement's likely effect on competition in the relevant markets.
Tying Arrangement
A seller’s act of conditioning the sale of a product or service on the buyer’s agreement to purchase another product or service from the seller.
Legality
Conformity with the law or legal statutes, often used to refer to the status of actions, agreements, or policies.
Competition
The rivalry among sellers in the market aiming to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix.
- Absorb the primary elements of antitrust laws and their utilization in business operations.
- Identify legal and illegal practices under the Sherman Act, the Clayton Act, and other antitrust regulations.
Verified Answer
CT
Caleb TumblesonMay 24, 2024
Final Answer :
True
Explanation :
Tying arrangements are considered legal or illegal based on their effect on competition. If a tying arrangement substantially lessens competition or creates a monopoly in any part of trade or commerce, it is likely to be deemed illegal under antitrust laws.
Learning Objectives
- Absorb the primary elements of antitrust laws and their utilization in business operations.
- Identify legal and illegal practices under the Sherman Act, the Clayton Act, and other antitrust regulations.