Tying arrangements
A) work only in perfectly competitive markets.
B) are illegal under the Sherman Act.
C) are illegal under the Clayton Act if they create monopoly.
D) are illegal under the Clayton Act and the Sherman Act only if they used along with predatory pricing.
E) are always illegal under the Clayton Act.

Question

Quizplus · Accepted Answer

Tying arrangements are generally considered illegal under the Clayton Act if they create a monopoly. However, in some cases, they may not be considered illegal if they have pro-competitive justifications. The Sherman Act may also apply to tying arrangements if they result in an anticompetitive effect in the relevant market. Therefore, options A, B, D, and E are incorrect.

Tying Arrangements