Difference between revisions of "Tying contract"
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Tying arrangements are disfavored and may violate the antitrust laws, particularly if the seller has market power or a monopoly. | Tying arrangements are disfavored and may violate the antitrust laws, particularly if the seller has market power or a monopoly. | ||
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Revision as of 22:13, July 16, 2007
A tying contract, tying arrangement or tie-in sale is a condition imposed by a powerful seller that requires buyers to purchase goods in addition to the desired good. For example, a tying arrangement would be if Microsoft required buyers to purchase other software as a condition of purchasing Windows.
Tying arrangements are disfavored and may violate the antitrust laws, particularly if the seller has market power or a monopoly.