MCS 3040 Chapter Notes - Chapter 24: Infor, Fax, Telemarketing
9 Apr 2014
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Chapter 24: sales and marketing: price, distribution, and risk management. Price price is freely negotiated when forming a contract. The federal competition act prohibits unfair pricing practices, including those involving the product and its (commercial) purchaser. An important policy objective of the legislation is to create a level of playing field with respect to channel power. Pricing conspiracies: definition: every person commits an offence who, with a competitor of that person with respect to a product, conspires, agrees or arranges a fix, maintain, increase or control the price for the supply of the product. For a criminal offence to be proven, it must be established not only that there was an agreement or a conspiracy to set prices, but also that the agreement lessened competition. This latter requirement relates to the market structure (factors such as number of competitors and barriers to entry) and the behaviour of the parties (implementation of their agreement combined with market power)
