Legal Question in Business Law in California

Having to buy one thing to receive something else

What is the clause that states ''it is illegal to be forced to buy one thing, to receive something else.'' For example, it is illegal to be forced to rent hotel rooms to receive convention center space.


Asked on 11/23/06, 6:19 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Having to buy one thing to receive something else

Never heard of it.

There may be some contexts in which the principle applies, usually in a regulated industry such as transportation or public utilities. Amtrak can't make you buy a ticket to New York if you only want to go to Chicago, and your phone company can't make you subscribe to its DSL service in order to have a 'talk' line.

Further, antitrust and unfair competition laws might conceivably affect some product-bundling schemes if the public interest were broadly affected. I can't think of an example.

However, in general, sellers can package their productes and services pretty much however they want, as far as I know. For example, go to a hardware store and see how much stuff is sold in plastic display packages. I recently had to buy an assortment of eight faucet washers to get the one I needed.

Another example is that wine retailers often have to buy slower-moving varietals like middle-quality merlot in order to get an allotment of the winery's hot-selling, short-supply cabernet or pinot.

If the hotel and the convention center are under the same ownership, I see nothing wrong with this. If the ownership is separate, it's remotely possible there is a collusive agreement that would violate an antitrust or pro-competition law. Oddly, if the hotel policy were the reverse -- if you had to book convention space in order to get a hotel room -- that could violate a kind of common-carrier or public accommodation principle of law that says innkeepers, etc. must accommodate all on equal terms. But that's not what's happening in your example.

Read more
Answered on 11/24/06, 12:17 am


Related Questions & Answers

More Business Law questions and answers in California