Tying Arrangements

A TYING arrangement is an agreement by a party to sell one product or service only if the potential buyer: a) also purchases a different product or service, or b) agrees she will not purchase that product or service from another seller. The item the buyer wants to buy is the tying item, and the one she is required to buy in order to get it is the tied item.

A Louisiana hospital required that all surgical patients use the services of one of four anesthesiologists. A competing anesthesiologist charged that this violated the Sherman Antitrust Act, which “prohibits contracts, combinations, and conspiracies in restraint of trade, and monopolization, [and] includes criminal penalties when enforced by the government. Violation can result in substantial fines and, for ...