[Scuba Diving] Felicia invented a new type of mask that was not subject to fogging for scuba divers and obtained a patent on it. She agrees to allow Mei to manufacture and sell the mask. She receives a sum of money for every mask that Mei sells. Felicia also entered into an agreement with Evan to allow him to sell the masks, but only if he also purchased non-patented diving suits from Felicia. All parties proceeded to do very well with their sales.
-The agreement between Felicia and Evan is what type of agreement?
A) It is a legal tying arrangement.
B) It is a legal cross-licensing agreement.
C) It is an illegal tying arrangement.
D) It is an illegal cross-licensing agreement.
E) A legal contractual agreement.

Question

Quizplus · Accepted Answer

The agreement between Felicia and Evan is considered an illegal tying arrangement because it requires Evan to purchase a non-patented product (diving suits) in order to have the right to sell the patented product (the mask). This practice is generally prohibited under antitrust laws because it can restrict competition and limit consumer choices.

[Scuba Diving] Felicia Invented a New Type of Mask That