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Vanderbilt Law Review

Authors

Joseph P. Bauer

First Page

283

Abstract

This Article will first examine the legal and economic theories applicable to tying arrangements. The Article will then examine the present confused state of the law, and will conclude by proposing a simplified test for evaluating future conduct. The Supreme Court has stated that "tying arrangements serve hardly any purpose beyond the suppression of competition."' If this is true, there is no logical justification for the two separate steps of the analysis, distinguishing the "existence" and "liability" issues; therefore, it is proposed that they be combined. In determining whether there is a tie,it may be relevant to determine whether the defendant has market power, and whether it has actually used that power. However, once a tie is found to exist, this should conclusively establish liability.The only remaining issue would be whether the defendant could show special facts that would justify the imposition of the tie-in, notwithstanding the strong presumption that all tie-ins injure competition.

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