BUSI 2601 Chapter Notes - Chapter 24: Pyramid Scheme
21 Jun 2016
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The competition act is to prohibit unfair practices, including those involving the producer and its commercial customer. The objective of the legislation is to promote a level playing field with respect to pricing, that is, prices are freely negotiated at all levels of distribution. Bid rigging: conspiring to fix the bidding process to suit the collective needs of those bidding. Abuse of dominant position: dominant company or group of companies have engaged in anticompetitive behaviour that unduly prevents or lessens competition. Anticompetitive acts include buying up products to prevent the erosion of price levels, requiring suppliers to sell only to certain customers, and selling products below acquisition cost in order to discipline or eliminate competitors. Price discrimination: the practice whereby a seller provides different pricing terms and conditions to competing customers for equivalent volume sales at an equivalent time. Predatory pricing: seller sets prices unreasonably low with the intent of driving out it competition.
