Briefly describe a "tying arrangement." Which antitrust statutes do tying arrangements potentially violate, and what must be shown to establish the violation?
What will be an ideal response?
Tying arrangements are vertical trade restraints that involve the seller's refusal to sell a product (the tying item) to a customer unless the customer purchases a second product (the tied item).
Section 3 of the Clayton Act prohibits tying arrangements that involve sales and leases of goods (tangible personal property). Section 1 of the Sherman Act (restraints of trade) forbids tying arrangements involving goods, services, intangible property, and real property. The defendant must be shown to have had sufficient economic power in the tying product market to restrain competition in the tied product market.
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