Suppose Coca-Cola Required Anyone Who Wanted to Distribute Coke Products

question 360

Multiple Choice

Suppose Coca-Cola required anyone who wanted to distribute Coke products must to also purchase a new candy product that Coca-Cola manufactures. This practice would be:

• A) illegal per se as an exclusive dealing arrangement under the Clayton Act
• B) illegal per se as a tying arrangement under the Clayton Act
• C) illegal as a tying arrangement if Coca-Cola had monopoly power
• D) legal as a method of product innovation allowed by the Clayton Act
• E) legal only because the candy requirement protected the company's sugar suppliers

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Definitions:

Dissolution

The process of formally closing or ending a company, partnership, or official relationship.

Unlimited Personal Liability

A legal status where an individual's financial liability is not limited to a specific amount, potentially involving all personal assets to satisfy debts or liabilities.

Tort

A civil wrong that causes someone else to suffer loss or harm, resulting in legal liability for the person who commits the act.

Breach Of Trust

The failure of a trustee to act in accordance with the terms of the trust agreement or in the best interest of the beneficiaries.