Chapter 3 Flashcards
REGULATION
Detailed legal rules enacted under the authority of an existing government statute typically by an admirative agency
Parties on left and right support what legislation
Right- minimal gov
left- lots of gov regulation
DIRECT REGULATION
Gov Controls the characteristics of the product or service such as pricing, price margin, production level
SOCIAL REGULATION
Set standards about how the product or service is made or delivered such as health, safety, and environmental standards
Businesses who do not want to comply with regulation can
- Find regulation invalid because it is not within the constitutional jurisdiction of the relevant government
2. Invalid because it violates charter of rights and freedoms
3. Admin agency application of regulation is wrong and the rule does not apply to the particular conduct
Constitution act of 1867 gives federal jurisdiction to Federal in section 91…
- Regulation of trade and commerce
• Only when interprovincial - Banking, shipping, navigation, air, radio and tv
- Taxation
- Intellectual property
- Interest, legal tender, currency, bills of exchange and promissory notes
Constitution act of 1867 gives federal jurisdiction to provincial in section 92….
- Property and civil rights
- Municipalities (can give power to regulate)
- Direct taxation in province
- All matters of private nature within the province
- Road transportation, stock exchange and securities trading
PITH AND SUBSTANCE
The true character of law determined by examining its purpose and legal effect on those subjects to it
DOUBLE ASPECTS
◊ Laws that have an aspect that falls within provincial power and other aspects that fall under federal power
FEDERAL PARAMOUNTCY RULE
When valid federal and provincial laws conflict with each other the federal law overrides the provincial law
ADMINISTRATIVE LAW
Law about actions and operations of government administrators and administrative tribunals
JUDICIAL REVIEW
Courts review of the legality of administrative acts and decisions
CONSPIRACIES
Agreements or arrangements between competitors to lessen competition
PRICE FIXING
Fix, maintain, increase, or control price of product or service
MARKET ALLOCATION
Divide sales, territories, customers, or marker for the production or supply of the product or service
OUTPUT RESTRICTION
Fix, maintain, control, prevent, lessen, or eliminate the production or supply of the product or service
BID-RIGGING
Agree not to submit a bid or to agree what bids to be submitted in advance
BID-RIGGING
Agree not to submit a bid or to agree what bids to be submitted in advance
How Monopolies Restricts competition
ABUSE OF DOMINANT POSITION
- Taking unfair advantage of holding a monopoly or dominant position in the marketplace
Not a criminal offence but reviewed by tribunal
PREDATORY PRICING
- Seller temporary reduces prices to unreasonably low level with aim to drive competitors out of business
DISCRIMINATORY PRICING
- Where seller makes practice of discriminating by giving on group one price while another
Distribution practices
- Have to supply a customer if they are willing to pay price and you have stock
EXCLUSIVE DEALING
When supplier of goods makes it a condition that the buyer should deal only or primarily in the supplier’s products
TIED SELLING
® When supplier makes it a condition that to get one type of product the buyer must also buy other products from supplier
MERGERS
Coming together of two or more businesses into a single business entity
competition enforcement
○ By the Commissioner of competition ○ Two branches • Civil matters (deputy commissioner) - Investigate less serious matters - Ex: exclusive dealing and tied selling - Go to competition tribunal
• Criminal matters (deputy commissioner) - Investigate criminal matters - Ex: conspiracy and bid rigging - Matters go to courts
CONSUMER
Individuals who buy goods and services from a business for their personal use and enjoyment
Misleading advertising
DUAL OFFENCE
- An offence under the competition act that may be either a criminal or regulatory offence depending on seriousness
- Max penalty of 14 years imprisonment and max fin $200,000 and/or 1 years imprisonment
• BAIT-AND-SWITCH-ADVERTISING
- Advertising at a bargain price but not supplying reasonable quantities
- Reviewed by tribunal
