Question 1

Natasha noted that the discounted price of an advertised item failed to register as the item was scanned.She had difficulty enforcing her right to receive a $10 reduction off the correct price on account of the retailer's scanning system error.Which of the following has been promoted to consumers as providing their right to receive this compensation from the retailer for this pricing infraction?

Accepted Answer

The Scanner Price Accuracy Voluntary Code is a guideline in Canada that provides consumers the right to receive compensation, such as a discount, when there is a discrepancy between the advertised price and the scanned price.

Question 2

The Competition Tribunal is investigating a claim that a group of companies with ample control of the market is actively carrying out anticompetitive acts.What is the name of the offence the Tribunal is investigating?

Accepted Answer

The offence being investigated by the Competition Tribunal is abuse of dominant position. This refers to a situation where a group of companies with a considerable degree of control of the market engages in anticompetitive acts that are intended to stifle and eliminate competition. This can include tactics such as charging lower prices to certain customers, making it difficult for new players to enter the market, or engaging in other activities that are designed to entrench the group's dominant position.

Question 3

The Competition Bureau is investigating a complaint involving allegations of refusals to supply retailers that sell below the producer's recommended retail price printed on the product package.Why is the Competition Bureau concerned with these practices?

Accepted Answer

The Competition Bureau is concerned with these practices because both refusals to supply retailers that sell below the producer's recommended retail price and setting a minimum resale price attempt to prevent competition and discipline the marketplace. This goes against the goal of promoting a competitive marketplace and can harm consumers by limiting their choices and access to lower prices.  Protections for consumers lie in the civil price maintenance provisions, which allow them to sue manufacturers for damages caused by illegal price maintenance practices. Criminal price maintenance provisions deal with more severe offenses, such as conspiracies to fix prices.

Question 4

The terms,"on sale," "reduced," and "clearance" are all synonymous with which of the following?

Accepted Answer

The terms "on sale," "reduced," and "clearance" all indicate that the product is being offered at a price lower than the ordinary price, which is the definition of a lesser price.

Question 5

Which of the following would a lawyer most likely indicate as being a specialized form of conspiracy by producers/suppliers to manipulate a market through price that results in fine and/or imprisonment?

Accepted Answer

Bid rigging involves multiple suppliers conspiring to control the outcome of a bidding process by agreeing on prices, terms, or conditions. This illegal activity results in artificially inflated prices and violates antitrust laws. If caught, individuals involved may face fines and imprisonment.

Question 6

Which of the following is considered to be a valid criticism of the pricing code launched in 2002 by several Canadian retail associations in order to avoid legislated regulations relating to accuracy of automatic scanner pricing?

Accepted Answer

The answer of Which of the following is considered to...

Question 7

In Canada,what distinguishes allowable business mergers,acquisitions,and takeovers from harmful,monopolistic expansion activities using the same merger,acquisition,or takeover methods?

Accepted Answer

The distinction between allowable business mergers, acquisitions, and takeovers and harmful, monopolistic expansion activities lies in a fine line. Canadian competition laws prohibit activities that would substantially lessen competition or lead to the creation or maintenance of monopoly power, but it can be difficult to determine the exact point at which a merger or acquisition becomes anticompetitive. Therefore, it is important for companies to seek legal advice and timely disclose their intentions to regulators to ensure they are not engaging in activities that could harm competition. Genuine selling opportunities and multi-level marketing are not relevant factors in this context.

Question 8

Ramsha obtained several quotes from fencing companies in his area of the city but found that there was little variance between them.He contacted fencing companies outside his residential area and was rewarded with a number of competitive quotes.If Ramsha were to forward a complaint to the Competition Bureau regarding the fencing quotes received from contractors in his area,which of the following would be required?

Accepted Answer

The answer of Ramsha obtained several quotes from fencing companies...

Question 9

What aim is met by regulating prices set between producers/growers and users?

Accepted Answer

Regulating prices set between producers/growers and users helps in protecting the right to negotiate prices through a supply chain. It ensures that both parties are treated fairly and helps prevent one party from exploiting the other. This ultimately benefits the consumers as well by ensuring a fair price for the goods or services.

Question 10

How is it possible for either a seller or a customer to commit a criminal pricing offence through their direct market contact?

Accepted Answer

Double ticketing is the practice of displaying one price for a product but charging a different price at the point of sale. This is a criminal pricing offense that can be committed by a seller.

Question 11

Which of the following would strongly influence the ability of the Competition Bureau to apply both the volume and time tests?

Accepted Answer

The volume and time tests require the Competition Bureau to review relevant sales data for the entire market, which would strongly influence their ability to apply these tests. The other options - due diligence defence, burden of proof for criminal predatory pricing, and complaints about inflated "regular" prices - may be relevant factors, but they do not have as direct an impact on the application of the volume and time tests.

Question 12

Even though EcoGreen Ltd.sold the same bulk amount of organic fertilizer to both Sunny Garden Centre Ltd.and Remple Garden Centre,Remple will pay more than Sunny.Given the price differential,which of the following would a business law professor most likely to indicate as being the reason EcoGreen has avoided an anticompetition offence?

Accepted Answer

Differential pricing due to adjusted cost of delivery expense is a legitimate reason for price differences, as it reflects actual cost variations rather than anti-competitive practices.

Question 13

What prohibits the sale of a product at a price that is higher than the advertised price?

Accepted Answer

The answer of What prohibits the sale of a product...

Question 14

If Sarafal were asked why she raised concerns during the marketing strategy meeting regarding lines that may be crossed in relation to the pricing and distribution aspects of the marketing plan,which of the following reasons would she most likely give?

Accepted Answer

Sarafal would most likely raise concerns about potential legal risks because pricing and distribution are areas where companies can easily fall afoul of regulations. This suggests that her primary motivation would be to avoid legal issues rather than to pursue a pricing or quality strategy or to avoid being used as a loss leader.

Question 15

Which of the following would a Competition Bureau investigator most likely indicate as the reason for seeking a remedial order from a judge?

Accepted Answer

The Competition Bureau investigator is most likely to seek a remedial order from a judge if the parties involved have failed to reach a voluntary agreement resolving a reviewable matter. This is because a judge has the authority to make a binding decision and impose remedies on the parties involved.

Question 16

If a retailer sells a substantial volume of its product at $2.40 within a reasonable period of time after offering the same item at a $1.85 sale price for two weeks,what will be the result?

Accepted Answer

According to the Competition Act, the ordinary selling price is determined by the volume test, which means the price at which the product has been sold for the greatest volume during a reasonable period of time. In this case, the substantial volume of sales at $2.40 establishes it as the ordinary selling price, and this will be the price that the retailer will need to sell the item at going forward.

Question 17

The Competition Act seeks to ensure commercial customers are free from unfair differential treatment that could seriously reduce competition in the marketplace.Which of the following is intended to be positively influenced by this legislated policy objective?

Accepted Answer

The answer of The Competition Act seeks to ensure commercial...

Question 18

Which of the following is a distinguishing feature of the offence of price discrimination in the market?

Accepted Answer

The answer of Which of the following is a distinguishing...

Question 19

In order for the Competition Bureau to intervene in circumstances where a distributor appears to have set prices that are unreasonably lower than those of one or more competing suppliers in the market,which of the following must be established?

Accepted Answer

The answer of In order for the Competition Bureau to...

Question 20

Which of the following is a valid criticism of the Competition Bureau's recent changes relating to anticompetitive activities that are intentionally designed to drive the final retail price of goods upward?

Accepted Answer

The criticism of the Competition Bureau's recent changes is that there is a lack of penalties to serve as a deterrent, which means that companies may continue to engage in anticompetitive activities without facing significant consequences.

Quiz 24: Sales and Marketing: Price, Distribution, and Risk Management