Alpha Inc, Beta Inc, and Gamma Inc all produced and sold widgets.Alpha and Beta entered into an agreement that lasted for two years.Under that agreement, Alpha agreed to sell widgets only in the western provinces and Beta agreed to sell widgets only in the eastern provinces.The parties also agreed, for the two-year period, to sell their widgets for a price that was below their own costs.That agreement violated the Competition Act.As a result of the performance of that agreement, Gamma suffered enormous financial losses.Which of the following statements is TRUE?

Question

Quizplus · Accepted Answer

The tort of conspiracy can be established if it is shown that the parties to the agreement should have known that their actions would likely cause harm to a third party, in this case, Gamma. It does not require the primary intention to be to cause harm, making option D correct.

Alpha Inc, Beta Inc, and Gamma Inc All Produced and Sold