David Ungar holds a Dunkin Donuts franchise The terms of his

David Ungar holds a Dunkin’ Donuts franchise. The terms of his franchise agreement require him to use only those ingredients furnished by Dunkin’ Donuts. He is also required to buy its napkins, cups, and so on, with the Dunkin’ Donuts trademark on them. Is this an illegal tying arrangement? What if Dunkin’ Donuts maintains that it needs these requirements to maintain its quality levels on a nationwide basis? [Ungar v. Dunkin’ Donuts of America, Inc., 429 U.S. 823]

Solution

This tying arrangement was not illegal but if Dunkin Donuts maintains that it needs these requirements to maintain its quality levels on a nationwide basis it would be violation of the Sherman Act. (http://openjurist.org/531/f2d/1211/ungar-v-dunkin-donuts-of-america-inc-ct-75-1625-rader)