Chapter 3

Question 1

REGULATION

Answer 1

Detailed legal rules enacted under the authority of an existing government statute typically by an admirative agency

Question 2

Parties on left and right support what legislation

Answer 2

Right- minimal gov

left- lots of gov regulation

Question 3

DIRECT REGULATION

Answer 3

Gov Controls the characteristics of the product or service such as pricing, price margin, production level

Question 4

SOCIAL REGULATION

Answer 4

Set standards about how the product or service is made or delivered such as health, safety, and environmental standards

Question 5

Businesses who do not want to comply with regulation can

Answer 5

1. 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

Question 6

Constitution act of 1867 gives federal jurisdiction to Federal in section 91…

Answer 6

• 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

Question 7

Constitution act of 1867 gives federal jurisdiction to provincial in section 92….

Answer 7

• 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

Question 8

PITH AND SUBSTANCE

Answer 8

The true character of law determined by examining its purpose and legal effect on those subjects to it

Question 9

DOUBLE ASPECTS

Answer 9

◊ Laws that have an aspect that falls within provincial power and other aspects that fall under federal power

Question 10

FEDERAL PARAMOUNTCY RULE

Answer 10

When valid federal and provincial laws conflict with each other the federal law overrides the provincial law

Question 11

ADMINISTRATIVE LAW

Answer 11

Law about actions and operations of government administrators and administrative tribunals

Question 12

JUDICIAL REVIEW

Answer 12

Courts review of the legality of administrative acts and decisions

Question 13

CONSPIRACIES

Answer 13

Agreements or arrangements between competitors to lessen competition

Question 14

PRICE FIXING

Answer 14

Fix, maintain, increase, or control price of product or service

Question 15

MARKET ALLOCATION

Answer 15

Divide sales, territories, customers, or marker for the production or supply of the product or service

Question 16

OUTPUT RESTRICTION

Answer 16

Fix, maintain, control, prevent, lessen, or eliminate the production or supply of the product or service

Question 17

BID-RIGGING

Answer 17

Agree not to submit a bid or to agree what bids to be submitted in advance

Question 18

BID-RIGGING

Answer 18

Agree not to submit a bid or to agree what bids to be submitted in advance

Question 19

How Monopolies Restricts competition

Answer 19

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

Question 20

Distribution practices

Answer 20

• 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

Question 21

MERGERS

Answer 21

Coming together of two or more businesses into a single business entity

Question 22

competition enforcement

Answer 22

○ 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

Question 23

CONSUMER

Answer 23

Individuals who buy goods and services from a business for their personal use and enjoyment

Question 24

Misleading advertising

Answer 24

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