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Road Tires Inc. conditions the sale of its products to Service Stores on the buyer’s agreement...

Road Tires Inc. conditions the sale of its products to Service Stores on the buyer’s agreement to buy Road’s tire-repair kits. Under the Clayton Act, this deal is

a.

a violation, depending on its purpose and the effect on competition.
b.

a per se violation.
c.

not a violation.
d.

a violation, unless the seller’s competitors make similar deals.
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Answer #1

Ans: a - violation, depending on its purpose and the effect on competition

Under the Clayton Antitrust Act, its regulate the fair competition and reduce monopolies, unethical business practices and give enforcement to Sherman Antitrust Act. In this idea Road Tires Inc. creates monopoly by creating condition on sale of tires by forcing buyer to buy Road's tire repair-kit.

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