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MCS 3040 (220)
Chapter 24

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University of Guelph
Marketing and Consumer Studies
MCS 3040
Joseph Radocchia

Chapter 24 Sales and Marketing Price Distribution and Risk ManagementPriceGenerally freely negotiated when forming a contract although a few prices are regulated by government utilities agricultural marketing boardsCriminal offence more serious referred to the attorney general for prosecution and more difficult to prove because of higher burden of proof neededReviewable matters civil in nature if not voluntarily resolved may result in remedial order from judge or competition tribunal Pricing practices between producer and commercial purchaser Federal competition act prohibits unfair pricing practiceswants to create level playing fieldThe act seeks to ensure that commercial customers are not subject to unfair differential treatment that could seriously reduce competition in the marketplace Includes criminal offences of price fixing and bid riggingPricing conspiracies working with competitors to control and manipulate prices Proper definition every person who commits an offence who with a competitor of that person with respect to a product conspires agrees or arranges a a fix maintain increase or control the price for the supply of the productPenalties max 14 yrs andor fine of 25 milTo be proven must be established that there was an agreement or a conspiracies to set prices BUT also that the agreement lessened competitionBid Rigging conspiring to fix the bidding process to suit the collective needs of those submitting bids Done by suppliersproducers to manipulate marker through prices Penalty finesimprisonmentCan take place in many forms such as agreements to submit bids on a rotating basis or to split a Market geographically Abuse of Dominant Position conduct that is reviewable under the competition act because a dominate company or group of companies have engaged in anticompetitive behaviour that unduly prevents of lessens competitionIncludes buying up products to prevent erosion of price levelsRequiring suppliers to sell on to certain customersSelling products below acquisition cost in order to discipline or eliminate competitors To take action competition tribunal must find that the company or group of companies substantially controls the marker under investigation that those under investigation have engaged in a practice of anticompetitive acts and
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