Deck 29: Competition Law

Question 1

Which of the following is NOT one of the constitutional heads of power on which the Competition and Consumer Act 2010 (Cth)is based?

A)The corporation's power.
B)The overseas trade and commerce power.
C)The trade or commerce within a territory power.
D)The trade practices power.

Answer 1

D

Question 2

Which of the following statements accurately describes the function of the Australian Competition Tribunal?

A)Hearing appeals from decisions to grant or revoke authorisations.
B)Administering and enforcing the Competition and Consumer Act 2010 (Cth).
C)Educating the public and the business community by providing consumer guidance.
D)Authorising otherwise prohibited restrictive trade practices.

Answer 2

A

Question 3

Describe how the concepts of market and competition are linked and important in respect to trade in Australia.

Answer 3

The term 'market' is defined in s 4E of the Competition and Consumer Act 2010 (Cth)as: a market in Australia and when used in relation to any goods and services,includes a market for those goods and services and any other goods and services that are substitutable for,or otherwise competitive with the first mentioned goods.
Competition is defined in s 4(1)as: including competition from imported goods or from services rendered by persons not resident or carrying on business in Australia.It is the actual mechanism that is used for discovering the kinds of goods and services the community wants and the manner in which these goods may be supplied in the cheapest possible way.
The concepts of market and competition are important because most of the restrictive trade practices are only prohibited when they have a substantial effect on competition,and competition takes place in a market.

Question 4

Which of the following bodies is primarily responsible for enforcing the Competition and Consumer Act 2010 (Cth)?

A)The Prices Surveillance Authority.
B)The Australian Competition and Consumer Commission.
C)The Australian Competition Tribunal.
D)The Trade Practices Commission.

Question 5

In the context of the Competition and Consumer Act 2010 (Cth),which of the following statements has NOT been said about the term 'competition'?

A)Competition is a process rather than a situation.
B)Competition is a mechanism for discovery of market information.
C)Competition is a mechanism for discovery of the most successful businesses.
D)Competition includes competition from imported goods.

Question 6

Which of the following is NOT one of the functions of the Australian Competition and Consumer Commission?

A)Hearing appeals from decisions to grant or revoke authorisations.
B)Educating the public and the business community by providing consumer guidance.
C)Administering and enforcing the Competition and Consumer Act 2010 (Cth).
D)Authorising otherwise prohibited restrictive trade practices.

Question 7

The concepts of 'market' and 'competition' are essential to the effective operation of the Competition and Consumer Act 2010 (Cth).

Question 8

The Commonwealth Government has limited the scope of the Competition and Consumer Act 2010 to situations that primarily involve:

A)intrastate trade and companies.
B)intrastate trade only
C)interstate trade and companies.
D)interstate trade only

Question 9

Which of the following is the definition of 'market' given by s 4E of the Competition and Consumer Act 2010 (Cth)?

A)An area of close competition between firms.
B)A market in Australia for goods or services and other goods or services which can be substituted for the first mentioned goods and services.
C)An area of actual and potential transactions between buyers and sellers amongst whom there can be strong rivalry.
D)All of the above.

Question 10

Which of the following is the correct definition of the term: 'resale price maintenance'?

A)The supplier of goods recommends a price at which the retailer may sell their goods or services.
B)The retailer of goods tries to impose a minimum price below which they will not purchase the goods from the supplier.
C)The supplier of goods tries to impose a minimum price below which their goods or services are not to be sold.
D)An agreement between the supplier and retailer that the goods will not be supplied to competitors of the retailer.

Question 11

What is the role and function of Australian Competition and Consumer Commission?

Question 12

Price fixing is:

A)allowed by the ACCC under limited circumstances,if it benefits the public.
B)permitted if it benefits corporate interests.
C)permitted as reality of the free market system.
D)allowed where the parties have a written agreement to engage in such conduct.

Question 13

Which of the following does NOT constitute resale price maintenance by a supplier?

A)Jones Ltd refuses to supply goods to Smith's Supermarket unless they agree not to sell below a specified price.
B)Jones Ltd induces Smith's Supermarkets not to sell goods supplied by them below the price specified by their distributors.
C)Jones Ltd supplies goods to Smith's Supermarkets with a request that they do not sell below a recommended price.
D)Jones Ltd and Smith's Supermarkets reach an agreement that goods supplied by Jones Ltd will not be sold below a price nominated by them.

Question 14

The agreement in TPC v Email [1980] ATPR 40-172 was held not to be a price fixing agreement because:

A)The two manufacturers were in competition with each other.
B)The parallel pricing was due to a meeting of minds.
C)The parallel pricing was due to market forces.
D)The two manufacturers had different pricing lists.

Question 15

Explain one of the main functions of the ACCC.

Question 16

What is the main reason for the practice of resale price maintenance?

A)Resale price maintenance is likely to increase demand for the product.
B)Resale price maintenance is an advertising ploy.
C)Discounting is perceived as anti-competitive.
D)Discounting is perceived as detrimental to the market status of the product.

Question 17

Which of the following is an example of a misuse of power in breach of s 46 of the Competition and Consumer Act 2010 (Cth)?

A)The sole manufacturer of a product refuses to sell it other than at an excessively high price.
B)A corporation acquires the assets of its only competitor in a market.
C)A corporation requires purchasers of its products not to acquire goods from or supply goods to a competitor.
D)Two corporations agree to refuse to acquire the goods of a third corporation.

Question 18

The Competition and Consumer Act 2010 (Cth)applies to all businesses in Australia as a result of which of the following agreements?

A)The Agreement to Implement the National Competition Policy and Related Reforms.
B)The Conduct Code Agreement.
C)The Competition Principles Agreement.
D)All of the above.

Question 19

If a supplier refuses to supply services to a second party because the second party will not agree that they have to buy goods from a third party,the supplier has engaged in:

A)resale price maintenance.
B)third-line forcing.
C)a primary boycott.
D)price signalling.

Question 20

What is the constitutional basis for the Competition and Consumer Act 2010 (Cth)?

Question 21

How can the restrictive trade practices provisions of the Competition and Consumer Act 2010 (Cth)be reconciled with the liberal notion of a free market?

Question 22

To establish a 'contract,arrangement or understanding' in breach of the Competition and Consumer Act 2010 (Cth),a plaintiff has to show evidence of:

A)Adoption of a particular course of action.
B)The meeting of two or more minds.
C)A plan of action.
D)All of the above.

Question 23

The act of increasing the price of petrol during a natural disaster emergency is prohibited because it amounts to predatory pricing.

Question 24

Which of the following types of prohibited conduct can NOT be authorised by the ACCC?

A)Mergers.
B)Boycotts.
C)Exclusive dealings.
D)Monopolisation.

Question 25

Employers frequently use secondary boycott provisions as a way to resolve industrial conflicts.

Question 26

It is legal for a supplier to suggest a selling price of its goods to a retailer.

Question 27

Which of the following is an example of a prohibited merger in breach of s 50 of the Competition and Consumer Act 2010 (Cth)?

A)The sole manufacturer of a product refuses to sell it other than at an excessively high price.
B)A corporation acquires the assets of its only competitor in a market.
C)A corporation requires purchasers of its products not to acquire goods from or supply goods to a competitor.
D)Two corporations agree to refuse to acquire the goods of a third corporation.

Question 28

ACME,Inc.has engaged in the practice of exclusive dealing,if it supplies building materials on the condition that its customers will not re-supply them to a third party.

Question 29

Which of the following is an example of a primary boycott in breach of s 45 of the Competition and Consumer Act 2010 (Cth)?

A)The sole manufacturer of a product refuses to sell it other than at an excessively high price.
B)A corporation acquires the assets of its only competitor in a market.
C)A corporation requires purchasers of its products not to acquire goods from or supply goods to a competitor.
D)Two corporations agree to refuse to acquire the goods of a third corporation.

Question 30

The ACCC may authorise a merger on the condition that:

A)the conduct will result in a benefit to the public.
B)the public benefit outweighs the reduction in competition.
C)the public benefit is outweighed by the reduction in competition.
D)the conduct will not result in a benefit to the public.

Question 31

When a bank insists that a borrower should insure the mortgaged property with an insurance company in which the bank has a substantial interest:

A)The bank is engaged in 'third line forcing' in breach of s 47(6)of the Competition and Consumer Act 2010 (Cth).
B)The bank is engaged in a 'secondary boycott' in breach of s 45D of the Competition and Consumer Act 2010 (Cth).
C)The bank has entered into an 'exclusionary agreement' in breach of s 45 of the Competition and Consumer Act 2010 (Cth).
D)All of the above.

Question 32

A secondary boycott results when parties A and B make a concerted effort to pressure third party C not engage in business dealings with party D.

Question 33

Corporations that have become merged in contravention of the Act can be separated by forcing the disposal of shares.

Question 34

The Competition and Consumer Act 2010 (Cth)strictly forbids monopolies.

Question 35

Which of the following is NOT an order that can be made under s 87 of the Competition and Consumer Act 2010 (Cth)?

A)An order varying a contract.
B)An order declaring part of a contract void.
C)An order directing the supply of services.
D)An order divesting a party of shares.

Question 36

'Deeming' means the conduct is prohibited without showing a negative impact from the conduct.

Question 37

Only the Australian Competition Tribunal can make authorisations.

Question 38

An authorisation is a determination that the conduct is not contrary to the Act.

Question 39

Only corporations can be liable for breaches of the Competition and Consumer Act 2010 (Cth).

Question 40

Actions to enforce the Act are heard by the Australian Competition Tribunal.

Question 41

A voluntary industry code regulates the conduct of parties who have agreed to sign up to them.

Question 42

Which of the following is one of the mandatory industry codes prescribed under the Competition and Consumer Act 2010 (Cth)?

A)The Wheat Port Code.
B)The Unit Pricing Code.
C)The Franchising Code.
D)All of the above.

Question 43

Which of the following is NOT a remedy for breach of the provisions of a voluntary industry Code of Conduct?

A)Damages.
B)A corrective advertising order.
C)The granting of an injunction.
D)A fine.

Question 44

The Unit Pricing Code regulates pricing information for grocery retailers,regardless of their size.