These contracts may be illegal when the seller has

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Unformatted text preview: ic geographical area. The courts have found few violations with these arrangements. The fourth distribution strategy is a tying arrangement, whereby a seller requires the purchaser of one product to also buy another item in the line. These contracts may be illegal when the seller has such economic power in the tying product that the seller can restrain trade in the tied product. Control through Self-Regulation self-regulation Alternative to government control where an industry attempts to police itself The government has provided much legislation to create a competitive business climate and protect the consumer. An alternative to government control is self-regulation, where an industry attempts to police itself. The major television networks, for example, have used self-regulation to set their own guidelines for TV ads for children’s toys. These 73 ker81063_ch03_058-077.indd Page 74 8/13/08 12:57:16 AM user ker81063_ch03_058-077.indd Page 74 8/13/08 12:57:16 AM user Companies must meet certain requirements before they can displ...
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