Solved

Monika Fashions Wants to Protect Its Brand Image

Question 17

Multiple Choice

Monika Fashions wants to protect its brand image.It has offered the owners of stores that stock its clothing a free weekend in Noosa plus airfares provided they sell Monika Fashions for the recommended retail price (RRP) .Has Monika Fashions breached an anti- competitive provision of the Competition and Consumer Act (CCA) ?


A) Yes,because even incentives to sell at an RRP could breach the Act.
B) No,because Monika Fashions has not made threats or refused to supply the retailers.
C) No,because a breach must be intentional.Monika Fashions appears to be innocently protecting its brand image.
D) Yes,because the CCA prohibits suppliers from offering gifts or prizes to retailers unless the offer has been authorised by the ACCC.

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