Question 1

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

Seeking a remedial order from a judge would be necessary if the Competition Bureau investigator is unable to reach a voluntary agreement resolving a reviewable matter.

Question 2

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

Accepted Answer

D

Question 3

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 a review of sales data for the entire market, so the availability and accuracy of such data would strongly influence the Competition Bureau's ability to apply these tests. The other choices relate to different aspects of competition law and would not have as direct an effect on this particular issue.

Question 4

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 5

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. What code has been promoted to consumers as providing their right to receive this compensation from the retailer for this pricing infraction?

Accepted Answer

The correct answer is the Scanner Price Accuracy Voluntary Code. This code is promoted to consumers in Canada, providing them the right to receive compensation (such as a discount or item for free) when a scanned price is higher than the advertised price, ensuring accuracy and fairness in pricing.

Question 6

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 7

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 of actively carrying out anticompetitive acts suggests an abuse of dominant position. Therefore, choice D is the best option. Price discrimination, predatory pricing, and price maintenance are also anticompetitive practices, but they do not necessarily imply a dominant position in the market.

Question 8

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 the accuracy of automatic scanner pricing?

Accepted Answer

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

Question 9

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

Accepted Answer

Regulating prices between producers/growers and users protects the right to negotiate prices through a supply chain. This ensures that both parties have a fair say in pricing and prevents one party from taking advantage of the other. It is not necessarily aimed at ensuring the lowest possible fair market price for consumers, nor is it related to legal risk or criminal offences.

Question 10

What is the term for a specialized form of conspiracy by producers/suppliers to manipulate a market through price that can result in a fine and/or imprisonment?

Accepted Answer

Bid rigging is a form of price fixing in which competitors conspire to collude on the terms of a contract or bidding process. This manipulation of market prices is illegal and can result in fines and/or imprisonment. Tied selling refers to the practice of requiring a buyer to purchase one product/service in order to buy another. Abuse of dominant position and predatory pricing are also forms of anticompetitive behavior, but they are not specifically related to market manipulation through price.

Question 11

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. Which of the following reasons would explain how EcoGreen has avoided committing an anticompetition offence?

Accepted Answer

The price differential between the two garden centers is due to an adjusted cost of delivery expense, which is a legitimate reason for charging different prices to different customers. This does not raise any anticompetition concerns as EcoGreen is not discriminating between the two customers based on any prohibited grounds such as race, gender, or location.

Question 12

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 13

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. Which of the following would be required if Ramsha were to forward a complaint to the Competition Bureau regarding the fencing quotes received from contractors in his area?

Accepted Answer

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

Question 14

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 a pricing offence where the seller displays two different prices for the same product or service. This can be considered as a criminal offence as it is misleading and fraudulent towards the customer, which can result in legal repercussions for the seller.

Answer: B) pyramid selling
 Pyramid selling is also considered a criminal offence where the seller offers the customer a chance to earn money by recruiting more people into the selling scheme rather than through the actual sales of the product or service. This can be considered a form of fraud where the seller is exploiting the customer for financial gain, and it can result in legal action against them.

Therefore, both A and B can be considered as choices for criminal pricing offences committed by either a seller or a customer through their direct market contact.

Question 15

Which of the following is synonymous with the terms, "on sale," "reduced," and "clearance"?

Accepted Answer

All three terms refer to products being sold at a lower price than their original or average price. This can be due to a variety of reasons such as the need to clear inventory, end of season, or to attract customers with a discount. The options B, C, and D do not accurately describe the meanings of these terms.

Question 16

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 given statement criticizes the Competition Bureau's recent changes relating to anticompetitive activities, stating that there is a lack of penalties to serve as a deterrent. This implies that the Bureau's actions may not be effective in preventing anticompetitive activities.

B, C, and D are not valid criticisms of the Competition Bureau's recent changes as they are not related to the given statement.

Question 17

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 can be a fine line, as both involve similar methods of consolidation. However, antitrust laws in Canada prohibit companies from engaging in monopolistic practices that harm competition and consumers. The Canadian Competition Bureau reviews proposed mergers and acquisitions to determine if they would substantially lessen competition in a market or lead to the exercise of market power, which would be harmful to consumers. Therefore, it is important for companies to carefully navigate this fine line and ensure that their activities do not breach antitrust laws. A genuine selling opportunity or timely disclosure may be important factors to consider, but they are not the primary determinants of whether a merger, acquisition, or takeover is allowable or harmful. Multi-level marketing is not relevant to this question.

Question 18

Why would Sarafal raise concerns during a marketing strategy meeting regarding lines that may be crossed in relation to the pricing and distribution aspects of the marketing plan?

Accepted Answer

Sarafal may be raising concerns about pricing and distribution to avoid any legal risks associated with crossing legal boundaries or engaging in unethical practices. This shows their commitment to ethical business practices and risk management.

Question 19

What will be the result 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?

Accepted Answer

According to the Competition Act, the ordinary selling price of a product must be established by the volume test, which requires that a substantial volume of the product must be sold at the sale price for a reasonable period of time after the sale. Since the retailer sold a substantial volume of the product at $2.40 after offering it at a sale price of $1.85 for two weeks, the ordinary selling price would be established by the volume test, and the retailer would not be in violation of the Act.

Question 20

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 this practice?

Accepted Answer

The Competition Bureau is concerned with this practice because it attempts to prevent competition and discipline the marketplace. This kind of behavior can limit consumer choice and potentially result in higher prices for consumers.

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