We discuss a many-body Hamiltonian with two- and three-body interactions in two dimensions introduced recently by Murthy, Bhaduri and Sen. Apart from an analysis of some exact solutions in the many-body system, we analyse in detail the two-body problem which is completely solvable. We show that the solution of the two-body problem reduces to solving a known differential equation due to Heun. We show that the two-body spectrum becomes remarkably simple for large interaction strengths and the level structure resembles that of the Landau levels. We also clarify the `ultraviolet' regularization which is needed to define an inverse-square potential properly and discuss its implications for our model.