What is a tying contract?
What is a tying contract?
Tying under U.S. law has been defined as “an agreement by a party to sell one product but only on the condition that the buyer also purchases a different (or tied) product, or at least agrees that he will not purchase that product from any other supplier.”
Why is tying illegal?
Tying is often illegal when the products are not naturally related. The basic idea is that consumers are harmed by being forced to buy an undesired good (the tied good) in order to purchase a good they actually want (the tying good), and so would prefer that the goods be sold separately.
Are tie-in sales illegal?
Offering products together as part of a package can benefit consumers who like the convenience of buying several items at the same time. If the seller offering the tied products has sufficient market power in the “tying” product, these arrangements can violate the antitrust laws. …
What is tie sale?
INTRODUCTION. A tie-in sale results from a contractual arrangement between a consumer and a producer whereby the consumer can obtain the desired good (tying good) only if he agrees also to purchase a different good (tied good) from the producer.
What is an example of tying?
Tying is a form of price discrimination where one good, called the base good, is tied to a second good, called the variable good. Let’s consider some examples: printers and ink. You buy one printer — it’s tied to a second good. You must buy the ink from the same company to be able to use it in that printer.
What does Tied in mean?
transitive verb. : to bring into connection with something relevant: such as. a : to make the final connection of tied in the new branch pipeline. b : to coordinate in such a manner as to produce balance and unity the illustrations were tied in with the text.
Is it illegal to tie a contract?
Once thought to be worthy of per se condemnation(8) without examination of any actual competitive effects, tying currently is deemed per se illegal under U.S. Supreme Court rulings only if specific conditions are met, including proof that the defendant has market power over the tying product.
Are tie-in agreements legal?
Antitrust concerns are raised by tying arrangements to the extent that they are used to maintain or augment the seller’s pre-existing market power or impair competition on the merits in the market for the tied product. Where a tying arrangement is unlawful, it may be illegal per se or illegal under the rule of reason.
Is it tie or tie?
Tieing, commonly spelled as tying, is defined as forming a knot or a connection between two or more people. An example of tieing is to form a bow in a scarf. Present participle of tie; alternative spelling of tying.
What does ties mean in economics?
Meaning of word economic ties|economic tie. in English – English Dictionary. financial and commercial relations or connections (between communities, countries, etc.)
What does tie-in mean in business?
/ˈtaɪ.ɪn/ a connection between two things, businesses, etc., often a connection between two products that are related or are sold together: The rules bar advertisements for products that have tie-ins to children’s shows.
What is an example of a tie-in?
An example of a tie-in is a sitcom that makes reference to the top movie of the year. An example of a tie-in is to offer one article if you purchase another article. An authorized product based on a media property, such as a film or video game, by way of cross-promotion.
What are tie-in sales?
tie-in sales a type of ANTI-COMPETITIVE PRACTICE / RESTRICTIVE TRADE PRACTICE whereby a supplier requires that the purchaser of product A (the tying good) must also buy his requirements of one or more other products (the tied goods) from the seller of A.
What is another name for a tie?
A necktie, or simply a tie, is a long piece of cloth, worn, usually by men, for decorative purposes around the neck, resting under the shirt collar and knotted at the throat. Variants include the ascot, bow, bolo, zipper tie, cravat, and knit. The modern necktie, ascot, and bow tie are descended from the cravat.
What is a system’s tie ratio?
A system’s tie ratio is Total Software Unit Sales divided by Total Console Unit Sales. Often a system’s tie ratio goes up over time, though not linearly. The rate is used especially early on during the adoption period of any product and it gives a primitive analysis of software success on the platform.
What is a tie-in work?
A tie-in work is a work of fiction or other product based on a media property such as a film, video game, television series, board game, web site, role-playing game or literary property.