Question 1

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 Competition Act?

Accepted Answer

The fact that the four companies consistently move together with same prices could be seen as a behavior that implies an agreement between them, even if there is no direct evidence of a conspiracy. Therefore, they might be prosecuted under the Competition Act for anti-competitive behavior.

Question 2

Bill and Ted are engaged in the business of selling bottled water.Bill's company operates in northern Ontario.Ted's company operates in southwestern Ontario.They are the main suppliers of bottled water in their respective areas.Ted decides to open a new office in northern Ontario in order to compete directly with Bill.Prior to the office opening,Bill and Ted bump into each other at a convention.They have a short discussion about business over dinner and agree orally that neither one of them will ever try and move into the other's existing territory.They shake hands and leave.The nature of the agreement entered into by Bill and Ted

Accepted Answer

The agreement entered into by Bill and Ted constitutes a breach of section 45 of the Competition Act, which prohibits agreements to prevent or lessen competition unduly. The agreement not to compete in each other's territories is a form of market allocation, which is anti-competitive behavior. Therefore, it is a violation of the Competition Act.

Question 3

Competitors can in fact enter into an agreement whereby each will discontinue producing a current product.If the efficiencies created for the market by this "specializing agreement" make up for any lessening of competition,the competitors may

Accepted Answer

Competitors entering into a specializing agreement must seek approval from the Competition Tribunal to ensure that the agreement does not violate competition laws. This approval is necessary to ensure that the efficiencies gained from such an agreement outweigh any potential harm to competition. Without seeking approval, the competitors may be subject to legal action for engaging in anti-competitive behavior. Therefore, option B is the best choice.

Question 4

In Canada,agriculture and immigration are

Accepted Answer

Agriculture and immigration fall under concurrent jurisdiction in Canada, meaning that both the federal and provincial governments have some responsibility and authority in these areas. The Constitution Act of 1867 outlines specific powers given to both levels of government in these areas.

Question 5

A large private nuclear facility began discharging radioactive water into the local lake whose waters were used to cool down the reactors.In this case

Accepted Answer

Discharging radioactive water into a local lake likely violates environmental laws, making the company liable for fines (A). Directors and officers can potentially defend themselves by proving they exercised due diligence to prevent the violation (B, C). Since both the company and its directors/officers could be held responsible, all options are correct (D), leading to E as the comprehensive answer.

Question 6

Regarding government regulations,a distinction is sometimes made between direct regulation and social regulation.Which of the following would be a social regulation?

Accepted Answer

Social regulations aim to ensure public health and safety, protect the environment, and promote fair competition. Standards of safety at amusement parks fall under the category of social regulation. The other options listed are examples of direct regulation, which typically involve setting rules and guidelines for specific industries or sectors.

Question 7

A is a student at a local university found guilty of plagiarism under the rules of the university senate.A's case was heard by a panel of professors created under the rules,who did not allow A to defend himself or to be represented by counsel.In this case,on a judicial review hearing of the matter

Accepted Answer

A will succeed on the grounds of unfairness because he was not given the opportunity to defend himself or be represented by counsel, which violates principles of natural justice and procedural fairness.

Question 8

John and Tony are brothers.They each own their own construction companies.They fiercely compete with one another for business.As a result of a call for tender by the local municipality to quote on certain road and sewer work,John and Tony decided to briefly discuss in advance of submitting their individual bids,a "reasonable range" of bids each should submit in response to the tender.Although neither one of the brothers believes they have committed any wrongdoing,they have in fact

Accepted Answer

John and Tony's discussion constitutes bid-rigging, a violation of section 47 of the Competition Act, which prohibits agreements or arrangements between competitors to submit non-competitive bids.

Question 9

Edward is an arbitrator appointed under the Arbitration Act.Procedure under the Act is set out in another statute,which makes it mandatory that arbitration briefs be filed by each party to the arbitration.In an arbitration hearing held yesterday,only one party was permitted to file an arbitration brief,but Edward decided that the other brief was unnecessary and rendered his decision.On a judicial review hearing of Edward's decision

Accepted Answer

The procedure under the Arbitration Act requires that arbitration briefs be filed by each party to the arbitration, as mandated by another statute. Therefore, it was a procedural irregularity for Edward to allow only one party to file the arbitration brief and render his decision without providing an opportunity for the other party to do the same. As a result, his decision is likely to be set aside.

Question 10

A provincial government is attempting to determine which of three sites in the province might be used to dispose of hazardous waste.In furtherance of this determination,representatives of local municipal governments where the sites are located meet with the provincial environment minister.During the meeting,the largest local municipal government advises the minister that if the site in their area is not chosen,it will ensure that its entire population will vote for the minister in the next provincial election and will contribute heavily to his campaign.A few weeks later,a different site is chosen.In this case,the largest local municipal government

Accepted Answer

The largest local municipal government has not bribed the minister at all. The meeting with the provincial environment minister was simply a way for the municipal representatives to express their concerns about the potential impact of the hazardous waste disposal site on their communities.

Question 11

A law that applies restrictions on advertising,but does NOT prohibit it,is probably

Accepted Answer

The Charter of Rights and Freedoms guarantees the freedom of expression, which includes commercial expression such as advertising. However, the government may impose reasonable restrictions on how advertising is conducted (e.g. regulations on false or misleading claims, restrictions on advertising to minors, etc.). As long as these restrictions are considered reasonable and justifiable, they are valid under the Charter.

Question 12

Carla owns Nifftee Dry Cleaners.If she is guilty of misleading advertising,who is the most likely to report her?

Accepted Answer

The answer of Carla owns Nifftee Dry Cleaners.If she is...

Question 13

Jack manufactures woollen winter sweaters,which are not selling very well in areas of Canada that have been warmer than usual.In order to improve his sales,George removes the tags from all of the sweaters identifying them as wool,and then sells them as summer sweaters.In this case,George has committed an offence under

Accepted Answer

George has committed an offence under the Textile Labelling Act by removing the tags which identify the sweaters as wool and selling them under a different label. The Textile Labelling Act requires that all textile products sold in Canada must have a label that identifies the fibre content, and any false or misleading labelling is an offence under the act.

Question 14

Under contract law,a provision in the contract for restricting trade will be struck down by the court if it

Accepted Answer

Under contract law, provisions in contracts that unreasonably restrict competition are considered against public policy and therefore, struck down by the court. The other options may or may not be considered restrictive trade practices and it would depend on the specific circumstances of each case.

Question 15

Administrative bodies created by statute must provide a basic level of procedural fairness to those persons likely to be affected by any decision.At a minimum,procedural fairness includes all of the following EXCEPT

Accepted Answer

While legal aid may be desirable for those who cannot afford a lawyer, it is not a requirement for providing basic procedural fairness. The other options listed are all necessary components of procedural fairness.

Question 16

The Competition Act creates a number of criminal offences punishable by fines and imprisonment.The Act prohibits competitors from entering into agreements that hurt competition in their industry which are generally described as conspiracies.Criminal conspiracies include all of the following EXCEPT

Accepted Answer

The criminal conspiracies under the Competition Act include price fixing, market allocation, and restriction of supply, but not telemarketing or sport professional restraint of play.

Question 17

The term or phrase used to describe an area in which both the federal and provincial governments have jurisdiction is

Accepted Answer

Concurrent jurisdiction refers to an area where both the federal and provincial governments have authority and can make laws. This often leads to potential conflicts and requires cooperation and coordination between the two levels of government.

Question 18

Even if it is determined that a proposed merger will substantially and detrimentally lessen competition,it may still be justified on the grounds of

Accepted Answer

Economic efficiency is a commonly cited justification for mergers even if they are found to lessen competition. This is because mergers can result in economies of scale and increased productivity, leading to lower costs and improved efficiency. However, economic efficiency must be weighed against the potential harm to consumers and competition.

Question 19

A law that prohibits any form of association between two or more businesses is probably

Accepted Answer

The Charter of Rights and Freedoms guarantees the freedom of association, which includes the right to form, join, and participate in an association with other businesses. Therefore, any law that prohibits such association would likely be deemed unconstitutional and invalid.

Question 20

At a convention of builders in Toronto,a proposal was adopted whereby whenever there was a call for tenders from the provincial government,members would check with each other before submitting their tenders to ensure that only the tenders of companies that needed the work would be accepted.This case is an example of

Accepted Answer

This proposal, whereby members check with each other before submitting tenders, is indicative of bid-rigging. Bid-rigging occurs when competitors collude to decide who will win a contract or tender, rather than competing fairly for the work. Essentially, the builders are manipulating the tender process to ensure that only select members win the work, and this is illegal under competition law.

Quiz 3: Government Regulation of Business

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 Competition Act?