Antitrust cases involving restrictive practices are often controversial, because they delve into specific

contracts or agreements between firms that are allowed in some cases but not in others.

For example, an exclusive dealing agreement between a manufacturer and a dealer can be legal or illegal. It is

legal if the purpose of the contract is to encourage competition between dealers. For example, it is legal for the

Ford Motor Company to sell its cars to only Ford dealers, and for General Motors to sell to only GM dealers, and

so on. However, exclusive deals may also limit competition. If one large retailer obtained the exclusive rights to

be the sole distributor of televisions, computers, and audio equipment made by a number of companies, then
this exclusive contract would have an anticompetitive effect on other retailers.

Tying sales happen when a customer is allowed to buy one product only if the customer also buys a second
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