United States v. Jerrold Electronics Corp.

Jerrold Electronics Corp. (defendant) sold community-antenna television systems and, from the start, sold them only as a complete package including a service contract, justified at the time by the equipment's unreliability. Over the years the equipment became reliable enough that the service contract was no longer needed, but Jerrold kept selling the products only as a bundled system. The United States sued, claiming the practice was an unlawful tying arrangement under the Sherman Act.