The four companies that sell bulk-rate diesel to farmers in the Saskatoon area have consistently moved together (up or down)with the same prices.It has been suggested that they have conspired together to keep prices the same.Might they be prosecuted under the Competitions Act?

Question

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The fact that all four companies consistently move together with the same prices is suggestive of an agreement, which can be inferred from their actual behavior. This would be a violation of the Competition Act, and therefore the companies may be prosecuted. Choice A is incorrect because the evidence is only suggestive and not conclusive. Choice B is incorrect because parallel pricing is not illegal in itself, but it can be evidence of collusion. Choice C is incorrect because conspiracy can be inferred from the behavior. Choice D is incorrect because intent does not necessarily need to be proved if there is evidence of collusion.

The Four Companies That Sell Bulk-Rate Diesel to Farmers in the Saskatoon