A Hospital Requires That Patients Use the Food Services Provided

question 353

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) an illegal boycott under a rule of reason analysis
• E) none of the other choices

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Definitions:

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, intended to standardize practices and streamline interstate commerce.

Unilateral Contract

A contract where only one party promises a reward in exchange for the performance of a specific act by the other party.

Contract Formality

Contract formality refers to the requisite legal formalities and procedures, such as written documentation or specific terms, necessary for a contract to be considered valid and enforceable.

Quasi Contract

A legal concept where courts impose a contract-like obligation on a party to prevent unjust enrichment, even though no real contract exists between the parties involved.