A Hospital Requires That Patients Use the Food Services Provided

question 366

Multiple Choice

A hospital requires that patients use the food services provided by one firm with which the hospital contracts. Pizza Hut wants to sell its food to patients in the hospital too, but the hospital refuses. Pizza Hut sues the hospital because of the tie-in between hospital stays and food service. The Supreme Court will probably hold the hospital's rule is:

• A) a per se illegal tie-in sale
• B) an illegal tie-in sale under a rule of reason analysis because of the loss of competition
• C) legal because tie-in sales are per se legal
• D) legal because under a rule of reason analysis the tie-in is not seen to injure competition
• E) none of the other choices

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Definitions:

Consumer Purchase Tests

Evaluations where consumers are asked to use and assess the value or utility of a product before it is widely marketed.

Misredemption

The act of consumers using coupons, vouchers, or offers in ways not intended by the issuer, leading to financial losses or unintended benefits.

Clearinghouse Costs

Expenses associated with the operation of a clearinghouse, which facilitates the exchange and settlement of financial or commodity transactions.

Redemption

The act of exchanging something, such as a coupon or voucher, for a product, service, or financial benefit.