If Wachovia should refuse to make loans unless customers would patronize Wachovia’s factoring company, that would be “tying
19. “Tying” effect. “Tying” is making it a condition of the sale of a product or the furnishing of a service that the customer purchase an additional product or service. ” When money is *637 scarce or in great demand the possibility for tying is, of course, greater. Banks and their various departments and affiliates encourage customers of one department or affiliate to deal with the other departments or affiliates.
Tying “effect” is suggested to be the tendency of customers to patronize one portion of a lender’s operation without any overt suggestion so that they will get a favored position with the lending departments when loan time arrives
There was considerable testimony describing tying and tying effects, and some testimony which was contended to demonstrate that tying had actually taken place, but the court on this record is unable to conclude that any tying actually has occurred nor that the tying “effect” is anything more than a contention on the part of the plaintiff, nor that it would be likely to occur in the future.
A factoring client under the testimony may be a poor customer for conventional bank loans. He may be factoring in the first instance because of a less than excellent credit rating; to obtain factoring he must assign his accounts receivable which are his liquid assets; and those who factor their accounts receivable are therefore apparently not the prime candidates for conventional bank loans in the first place. Continua a leggere “If Wachovia should refuse to make loans unless customers would patronize Wachovia’s factoring company, that would be “tying” →
