Exam 32: Government Regulation of Business

Paul is a licensed plumber who provides residential plumbing service. He advertises in the yellow pages and the classified section of the local newspaper. It is claimed that his advertising is deceptive. Is he subject to the provisions of the federal Competition Act? Explain.

Ali needs to take out a new car loan. Regarding the loan costs, Ali is able to compare the dealer's suggested financing plan with that of his Bank's by virtue of the fact that

Why is it essential in our free market economy to have competition?

Discriminatory pricing is an example of a conspiracy.

Carla owns Nifftee Dry Cleaners. If she is guilty of misleading advertising, who is the most likely to report her?

The four companies that sell bulk- rate diesel to farmers in the Blaine area have consistently moved together (up or down) with the same prices. It has been suggested that they have conspired together to keep prices the same. Might they be prosecuted under the Competitions Act?

Since this characteristic is so essential to an efficient market economy, governments intervene in order to preserve it. What is this characteristic?

What does it mean when distribution practices such as exclusive dealing, tied selling, and market restriction are said to be "reviewable"?

Parallel pricing is an example of monopolizing.

A cooling- off period in door- to- door selling