Deck 15: Competition Law and Environmental Law

Question 1

Regulation of trade practices is a matter of provincial jurisdiction.

Answer 1

False

Question 2

Budget Wrench Co.sold its wrenches to a variety of retail outlets at $1 each.Sleazy Hardware purchased a large quantity of the wrenches and used them over a six-month period as a special advertised sale item,priced at 25 cents each.Budget Wrench Co.requested Sleazy Hardware to stop selling its wrenches as a "special" sale item,but Sleazy Hardware refused to do so.
Budget Wrench Co.need not sell additional supplies of wrenches to Sleazy Hardware,because it was selling the wrenches as a loss leader.

Answer 2

True

Question 3

The investigation of reviewable practices and rectification orders made pursuant to those investigations under the Competition Act are procedures in the area of criminal law.

Answer 3

False

Question 4

A Canadian firm with a highly desirable line of pharmaceutical products offers "all or nothing" to a distributor in Africa.The distributor covets one particular vaccine only but reluctantly takes the line of products in order to get the vaccine.The Canadian company has broken the law.

Question 5

A manufacturer says the following to a retailer: "Sell these goods at whatever price you desire,but should you sell for less than $50 we shall supply you no more." Such a statement is legal.

Question 6

Cisco developed a carburetor for automobiles that he called the "Cisco-Carb." He advertised the carburettor in a national automobile magazine in a full-page advertisement under a caption that read."Proven Performance-200 miles to a gallon of gas in any car." The advertisement offered the carburetor for $100 on a 30-day,money-back guarantee.
Unless proper testing was done to substantiate the claim of 200 miles to a gallon,a failure of the goods to perform as stated would constitute false or misleading advertising.

Question 7

Loss leader advertising constitutes misleading advertising under the Competition Act.

Question 8

The ABC Bakery sold bread and cakes to Peggy's Grocery under an agreement whereby Peggy would not retail the goods for less than the price printed on the wrapper of the products.By their agreement,ABC Bakery would provide Peggy's Grocery with an extra 5 percent discount at the end of each month,based upon the volume sold at the stipulated retail price during the month.
Both ABC Bakery and Peggy's Grocery appear to have acted in violation of the Competition Act by entering into their agreement.

Question 9

Cisco developed a carburetor for automobiles that he called the "Cisco-Carb." He advertised the carburettor in a national automobile magazine in a full-page advertisement under a caption that read."Proven Performance-200 miles to a gallon of gas in any car." The advertisement offered the carburetor for $100 on a 30-day,money-back guarantee.
Cisco would not have violated the Competition Act,because his performance claim was made in a unit of measurement other than metric.

Question 10

Budget Wrench Co.sold its wrenches to a variety of retail outlets at $1 each.Sleazy Hardware purchased a large quantity of the wrenches and used them over a six-month period as a special advertised sale item,priced at 25 cents each.Budget Wrench Co.requested Sleazy Hardware to stop selling its wrenches as a "special" sale item,but Sleazy Hardware refused to do so.
Sleazy Hardware was selling the wrenches as a "loss leader."

Question 11

If a corporation attempts to fix base prices for its goods by setting up separate wholly owned corporations in each region to do the selling of those goods at a fixed price,the conspiracy of these corporations to do so with the parent may not be attacked under the Competition Act.

Question 12

The ABC Bakery sold bread and cakes to Peggy's Grocery under an agreement whereby Peggy would not retail the goods for less than the price printed on the wrapper of the products.By their agreement,ABC Bakery would provide Peggy's Grocery with an extra 5 percent discount at the end of each month,based upon the volume sold at the stipulated retail price during the month.
The agreement is an enforceable agreement between ABC Bakery and Peggy,because ABC Bakery can show consideration in the form of the 5 percent discount for Peggy's promise to sell at a fixed price.

Question 13

The ABC Bakery sold bread and cakes to Peggy's Grocery under an agreement whereby Peggy would not retail the goods for less than the price printed on the wrapper of the products.By their agreement,ABC Bakery would provide Peggy's Grocery with an extra 5 percent discount at the end of each month,based upon the volume sold at the stipulated retail price during the month.
The agreement is lawful,because any sale of goods for a price less than the price printed on the package would mean that ABC Bakery was falsely advertising the price of the product.

Question 14

A breach of the Competition Act confined to one province is a matter to be heard before a Small Claims Court of that province.

Question 15

Loss leader selling is an offence under the Competition Act.

Question 16

Cisco developed a carburetor for automobiles that he called the "Cisco-Carb." He advertised the carburettor in a national automobile magazine in a full-page advertisement under a caption that read."Proven Performance-200 miles to a gallon of gas in any car." The advertisement offered the carburetor for $100 on a 30-day,money-back guarantee.
For the Crown to successfully obtain a conviction against Cisco under the act,it must prove that the goods do not perform as claimed,and that Cisco was responsible for the misleading advertisement.

Question 17

The ABC Bakery sold bread and cakes to Peggy's Grocery under an agreement whereby Peggy would not retail the goods for less than the price printed on the wrapper of the products.By their agreement,ABC Bakery would provide Peggy's Grocery with an extra 5 percent discount at the end of each month,based upon the volume sold at the stipulated retail price during the month.
The agreement between ABC Bakery and Peggy is an agreement in restraint of trade.

Question 18

Cisco developed a carburetor for automobiles that he called the "Cisco-Carb." He advertised the carburettor in a national automobile magazine in a full-page advertisement under a caption that read."Proven Performance-200 miles to a gallon of gas in any car." The advertisement offered the carburetor for $100 on a 30-day,money-back guarantee.
If the advertisement was intended to read "20 miles to the gallon" instead of the "200 miles to the gallon," and Cisco immediately placed a correcting advertisement in the next issue of the magazine,he would not be in violation of the act.

Question 19

Cisco developed a carburetor for automobiles that he called the "Cisco-Carb." He advertised the carburettor in a national automobile magazine in a full-page advertisement under a caption that read."Proven Performance-200 miles to a gallon of gas in any car." The advertisement offered the carburetor for $100 on a 30-day,money-back guarantee.
Because Cisco offered the goods on a 30-day,money-back trial,the goods need not perform as described in the advertisement.

Question 20

Cisco developed a carburetor for automobiles that he called the "Cisco-Carb." He advertised the carburettor in a national automobile magazine in a full-page advertisement under a caption that read."Proven Performance-200 miles to a gallon of gas in any car." The advertisement offered the carburetor for $100 on a 30-day,money-back guarantee.
False or misleading advertising of goods is an offence under the Competition Act.

Question 21

Even if societal attitudes had been more supportive in the past,the Common Law would not have been of much use to attack the sources of pollution,and stop them at source.This corner was not turned until Parliament filled the breach.

Question 22

When Bubbles Brewery Inc.agreed with Suds Brewers Ltd.to produce and bottle both companies' beer in identical long-necked,clear-glass bottles,distinct from the brown bottles used by the rest of the brewing industry

A)both brewing companies may be subject to conviction under the Competition Act for lessening competition.
B)both companies may be convicted only if it can be proven that their agreement would likely completely eliminate competition in their market.
C)neither company could ever be convicted if it exports all its product.
D)the Competition Act does not apply because this is an exempt activity.
E)a and c.

Question 23

Tied selling occurs when a manufacturer requires a retailer to sell two of its products to every customer who wants to purchase only one of them.

Question 24

Laws relating to the regulation of the environment can be passed by municipalities as well as by provinces and the federal government.

Question 25

The Oldman River case stands as an example of the complexity,and possibility of overlap,of federal and provincial regulation of the environment.

Question 26

Chief among the aims of the Competition Act is to prohibit conspiracies in restraint of trade,and,in their place,to promote combinations within trade.

Question 27

A clear environmental audit assures purchasers of land that they will never have to clean up any contaminants in land that they intend to purchase.

Question 28

An appeal from an order of the Competition Tribunal lies with the Federal Court of Appeal.

Question 29

The enforcement of the Competition Act

A)is subject to proof on the balance of probabilities.
B)requires investigation of any allegation of violation made by any private individual.
C)permits entry by the commissioner of competition on the premises of any person who may have evidence related to an inquiry.
D)empowers the Competition Tribunal to make rectification orders in investigations of restrictive trade practices.
E)a,b,and c.

Question 30

Activities of sellers relating to the distribution and sale of products

A)constitute offences if they include selling products at a lower price in one part of the country than in others.
B)may include the provision by sellers of a non-obligatory suggested retail price for its products.
C)may not include the refusal to supply goods to buyers that repeatedly sell them at cost.
D)may discriminate among non-competing buyers.
E)b and d.

Question 31

A lender would be more likely to request an environmental assessment than an environmental audit before lending funds to a borrower intent on acquiring derelict lands that were once a large railway yard.

Question 32

A lender that took a security interest in land from the borrower and later takes possession may be required to clean up the land if it is contaminated.

Question 33

The standard of care under environmental legislation is very high,holding officers and directors of corporations personally liable for allowing any pollution to occur,regardless of the steps they may have taken to prevent it.

Question 34

Most environmental matters governing business activities fall under provincial jurisdiction for regulation.

Question 35

Restrictive trade practices subject to the Competition Act

A)relate to dealings between a firm and its competitors.
B)may apply to services as well as goods.
C)may include both private and public takeovers.
D)are reviewable by the Competition Tribunal on a non-criminal basis.
E)All of these.

Question 36

Where a new neighbour arrives beside a long-existing visible nuisance (noise or smoke,for example),if the defendant can show that all possible care and skill had previously been taken in the attempt to lessen or eliminate the nuisance,the action in nuisance will fail.

Question 37

The Common Law relating to environmental matters cannot redress cumulative damage to the environment.

Question 38

Tied selling occurs when a wholesaler offers to sell a popular product to a retailer but will do so only if the retailer also purchases a number of unpopular products.

Question 39

Under the Competition Act,restrictive trade practices are prohibited in dealings between a firm and its competitors,as well as in dealings between a firm and its customers.

Question 40

Where a new neighbour arrives beside a long-existing visible nuisance (noise or smoke,for example),the new neighbour has no right in tort to demand termination of the nuisance.

Question 41

Describe the goals of the Kyoto Protocol and the position taken by the Harper Government (as of January 2008).

Question 42

The Commissioner of Competition

A)is appointed by the National Research Council to investigate appropriate research activities to receive government funding.
B)must investigate any alleged violations of the Competition Act.
C)is not required to obtain a search warrant prior to entering onto private property to search and seize evidence.
D)presides over the Competition Tribunal and assigns work to its members.
E)None of these.

Question 43

Violations of provisions of the Competition Act may be addressed in which of the following ways?

A)Injured parties may sue for damages suffered and,under the penalty provisions,may recover up to three times the amount of damages in some circumstances.
B)When a reviewable activity has been confirmed,the Competition Tribunal may order its cessation or apply another legislated remedy.
C)Violations can be held to be violations only if it is shown that the particular activity has the effect or the established purpose of substantially lessening or eliminating competition in an area.
D)Violations are not subject to prosecution if they relate to goods sold by a monopoly at prices under the control of a government commission.
E)All of these.

Question 44

The trade practices restricted under the Competition Act have arisen as a reflection of values of our political and economic society.Discuss the reasons for the existence of regulation of various practices and raise any concerns you may have with regard to competition regulation.

Question 45

Describe the scope and powers of the Competition Tribunal to enforce the provisions of the Competition Act.

Question 46

The Kyoto Protocol

A)is an agreement between Canada and the United States.
B)is an international agreement that governs exchange rates for currency.
C)is an international agreement that governs tariffs relating to textile trade.
D)is an international agreement that attempts to reduce the amount of greenhouse gases.
E)is an international agreement that governs the formality required when meeting with officials of Kyoto.

Question 47

The Competition Act provides the right to maintain a Common Law civil action in certain circumstances.Discuss how this may arise and the course such an action may take.

Question 48

The Massive Mining Company operated several mines in close proximity and wished to link three of its mines with a pipeline conveyor to transport ore from one site to another.The proposed conveyor would have to cross a creek that,in the spring,is used by local residents for canoeing.Before Massive Mining Company can construct its conveyor

A)It must determine whether the Navigable Waters Protection Act applies to the proposed project.
B)It must show it has used due diligence in order to obtain a licence for the conveyor.
C)It may have to perform an environmental audit to evaluate any harmful effects the conveyor may have on the environment.
D)It may be required to undergo an environmental assessment.
E)a and d.

Question 49

The Chartered Accountants Society,the governing body of chartered accountants,has set regulations to govern the activities of its members.Which of the following regulations do not violate the Competition Act?

A)Members may advertise only in the Yellow Pages and in approved trade journals.
B)A tariff of fees establishes minimum amounts to be charged to clients for specified services.
C)Advertising may not discuss price or offer any price discounts to the public.
D)The Society may limit the number of new CA's admitted to practice each year.

Question 50

Describe how an interest in property can result in liability for environmental contamination.

Question 51

The Insecto Co.advertised on television its product,the "Fly-Bye," a sheet of sticky paper that attracted and then glued flies to its surface.The advertising claimed that the product would catch up to 100 flies per hour for six hours or the purchase price of $9.99 would be refunded.

A)The Insecto Co.must test at least 95 percent of its products for its claim to be valid.
B)Insecto Co.may be prosecuted under the Competition Act if one local distributor were selling Fly-Byes for $10.99.
C)If Insecto Co.were to sell Fly-Byes to hardware stores for resale,it may continue to advertise and price the product at $9.99.
D)A hardware store that advertises a two-day promotion on Fly-Byes for $5.99 must provide shoppers with a rain cheque if it mistakenly did not order enough goods.
E)b and d.

Question 52

Describe the operation of the reviewable activity "bait and switch."

Question 53

The post-war rise in environmental legislation at all levels of government was,in part,a response to the limitation of the Common Law to adequately address the control,abatement,and remedy of environmental damage.Discuss those limitations and how legislation has met the many environmental challenges.

Question 54

Under environmental legislation,enforcement officers

A)are not authorized to examine and seize business records.
B)are not authorized to order a suspected offender to cease operations.
C)are responsible for monitoring compliance with the legislation.
D)are authorized to carry weapons.
E)c and d.

Question 55

Where a review indicates a business activity has been in restraint of competition,the Competition Tribunal will

A)issue a rectification order.
B)issue a criminal indictment.
C)issue a summary conviction.
D)issue a pro tempore injunction.
E)issue a forfeiture order.

Question 56

Recyclemates,a private organization,planned to establish a recycling and waste recovery facility on a five-acre piece of property at the outskirts of Smallville.The facility would sort and resell recyclable materials as well as produce compost for sale to farmers and gardeners.Before the facility may begin operation

A)it may be required to obtain a licence to operate the site.
B)it will fall primarily under provincial legislation for environmental regulation.
C)it will require an environmental assessment and approval.
D)it must acquire municipal zoning for the site consistent with its proposed purpose.
E)All of these.

Question 57

Subsection 45(2)of the Competition Act enumerates certain activities that are exempt from the act in certain circumstances.Describe these activities and indicate in which circumstances they do not violate the act.

Question 58

Which of the following are NOT reviewable activities under the Competition Act?

A)promotional prize contests.
B)double-ticketing.
C)tied selling.
D)price stabilization.
E)None of these.

Question 59

Under the Common Law of environmental nuisance

A)a defendant may successfully claim that the nuisance is a benefit to the public,thereby eliminating liability.
B)a defendant may use the defence that it used all necessary care and skill to prevent the nuisance from occurring.
C)a defendant may successfully use the defence that it existed with its offending activity before the plaintiff came to the nuisance.
D)a defendant may not argue that its actions do not constitute nuisance because other entities independent of it are also engaged in the same activity.
E)All of these.

Question 60

"Due diligence" in the environmental law context

A)is one of the defences that a party charged with an environmental offence may use.
B)would be satisfactorily proven where company officials have issued directives to management to establish careful storage procedures for potential contaminants.
C)requires ongoing monitoring by the company's directors to ensure that management is complying with the directives set out.
D)is part of the environmental assessment process to determine whether a certain activity has the potential for causing environmental damage.
E)a and c.