Question

EA Games Industries is a manufacturer of home video game machines and home video games. Johnson Department Store wants to market the home video games, but EA refuses to sell the games unless Johnson also agrees to purchase the home video machines. A court will most likely find such a restriction to be a(n):

a. interlocking directorate.
b. lawful tying agreement.
c. unlawful tying agreement.
d. per se violation.

Answer 1

A court would likely find EA Games Industries' requirement for Johnson Department Store to buy video game machines in order to purchase video games an unlawful tying agreement, which is considered anticompetitive.

Step-by-step explanation:

If EA Games Industries requires Johnson Department Store to purchase home video game machines as a condition of being allowed to buy home video games, a court would most likely find this restriction to be a unlawful tying agreement. A tying agreement is controversial when it forces customers to buy a product they may not want or need, and such agreements can be deemed unlawful if they limit competition in the market. In this scenario, since EA is tying the sale of video games to the purchase of video game machines, without a plausible competitive justification, it could be viewed as anticompetitive.