Exclusive Dealing

Exclusive Dealing General Legality
Basically per se legal; would require a miracle to strike down, today
5 yr. limit
If deal ruled illegal
Manufacturer can just buy the supplier, anyway . . . (Integrate vertically)
Exclusive dealing pros
Efficiency: helps minimize inventory (lower costs)
Inter-brand free riding
Standard oil sets up a service station and insists on an exclusive K on oil and automotive products
You can get the gas only if you get an exclusive K on all the other stuff
The competitors selling the other stuff free ride off what Standard Oil set up