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Doncouse_Jeremy_Week7 - Jeremy Doncouse LGLS298 Problem 1...

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Jeremy Doncouse LGLS298 Problem 1 on page 530 Question 22.8 on page 552 11/16/2008 Problem 1 on page 530: Does an agreement in which SSS, Inc requires the purchase of a service agreement in conjunction with the purchase of component parts with ABC Manufacturing violate antitrust law? This kind of arrangement, known as a tying arrangement, does violate antitrust law. Section 3 of the Clayton Act prohibits tying arrangements, vertical trade restraints, forcing a buyer to purchase two products in conjunction with each other. Section 1 of the Sherman Act forbids, under restraints of trade, tying arrangements involving goods, services, intangible property, and real property. When SSS, Inc required ABC Manufacturing to purchase a service contract, a service, to compliment ABC’s purchase of component parts, goods, SSS is trying to force ABC into a tying arrangement. Question 22.8 on page 552: Miller-Brewing Company has made Miller Lite beer since the 1970s. Falstaff Brewing Corporation has been making Falstaff Lite since July 11, 1980.
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