The ABC Bakery sold bread and cakes to Peggy's Grocery under an agreement whereby Peggy would not retail the goods for less than the price printed on the wrapper of the products.By their agreement,ABC Bakery would provide Peggy's Grocery with an extra 5 percent discount at the end of each month,based upon the volume sold at the stipulated retail price during the month.
-Both ABC Bakery and Peggy's Grocery appear to have acted in violation of the Competition Act by entering into their agreement.

Question

Quizplus · Accepted Answer

The agreement between ABC Bakery and Peggy's Grocery to fix the retail price of the goods sold violates the competition act by restricting competition and setting a minimum resale price. This type of agreement is considered anti-competitive behavior and is prohibited under the Competition Act.

The ABC Bakery Sold Bread and Cakes to Peggy's Grocery