Question 1

Which of the following types of secondary boycotts will contravene The Competition and Consumer Act 2010 (Cth)?

Accepted Answer

A) The dominant purpose of the boycott is substantially related to creating a monopoly in the marketplace. 
B) The dominant purpose of the boycott is substantially related to environmental or consumer protection. 
C) The dominant purpose of the boycott relates to work related issues (e.g.remuneration, working hours) 
D) The target of the boycott is the employer of the boycotters. 
A) The dominant purpose of the boycott is substantially related to creating a monopoly in the marketplace. 
B) The dominant purpose of the boycott is substantially related to environmental or consumer protection. 
C) The dominant purpose of the boycott relates to work related issues (e.g.remuneration, working hours) 
D) The target of the boycott is the employer of the boycotters. A

Question 2

While the Competition and Consumer Act 2010 (Cth) does not comprehensively define a 'market', the Courts usually accept the wide definition of a market as:

Accepted Answer

A) the area of close competition or field of rivalry between businesses. 
B) a public gathering held for buying and selling merchandise. 
C) the group of consumers or organisations that are interested in product. 
D) the business of buying or selling a specific commodity. 
A) the area of close competition or field of rivalry between businesses. 
B) a public gathering held for buying and selling merchandise. 
C) the group of consumers or organisations that are interested in product. 
D) the business of buying or selling a specific commodity. A

Question 3

Tom and Jack are competing suppliers of hair care products.Mary runs a hair salon and wants to sell hair care products at her salon.Which of the following is an example of exclusive dealing?

Accepted Answer

A) Tom sells his hair care products to Mary on the condition that Mary does not purchase similar hair care products from Jack. 
B) Mary buys hair care products from Tom but does not buy products from Jack because his products are more expensive. 
C) Tom sells his hair care products to Mary telling her that his products are superior to Jack's hair care products and as a result Mary does not purchase hair care products from Jack. 
D) Mary promises to only buy hair care products from Tom if he will sell her his products at half the price Jack is offering for his products. 
A) Tom sells his hair care products to Mary on the condition that Mary does not purchase similar hair care products from Jack. 
B) Mary buys hair care products from Tom but does not buy products from Jack because his products are more expensive. 
C) Tom sells his hair care products to Mary telling her that his products are superior to Jack's hair care products and as a result Mary does not purchase hair care products from Jack. 
D) Mary promises to only buy hair care products from Tom if he will sell her his products at half the price Jack is offering for his products. A

Question 4

Which of the following is most likely to be an agreement that lessens competition in breach of CCA Part IV?

Accepted Answer

A) The only two pencil manufacturers in Australia agree to help each other maintain their respective shares of the pencil market. 
B) The only two eraser manufacturers in Australia agree to cooperate to conduct research into new eraser technology. 
C) The only two pen manufacturers in Australia agree to jointly set up a factory in China. 
D) The only two ruler manufacturers in Australia agree to manufacture plastic rulers instead of wooden rulers. 
A) The only two pencil manufacturers in Australia agree to help each other maintain their respective shares of the pencil market. 
B) The only two eraser manufacturers in Australia agree to cooperate to conduct research into new eraser technology. 
C) The only two pen manufacturers in Australia agree to jointly set up a factory in China. 
D) The only two ruler manufacturers in Australia agree to manufacture plastic rulers instead of wooden rulers.

Question 5

The ACCC is closely monitoring competition in the Australian wine industry.Which of the following factors is least likely to be emphasised by the ACCC in determining whether or not the wine market in Australia is competitive?

Accepted Answer

A) The number of wine producers in Australia. 
B) The volume of wine consumed in Australia. 
C) The cost and barriers to becoming a wine producer in Australia. 
D) The arrangements that exist between wine producers in Australia. 
A) The number of wine producers in Australia. 
B) The volume of wine consumed in Australia. 
C) The cost and barriers to becoming a wine producer in Australia. 
D) The arrangements that exist between wine producers in Australia.

Question 6

Which of the following cannot be authorised by ASIC?

Accepted Answer

A) Misuse of market power. 
B) Price fixing. 
C) A prohibited merger. 
D) An agreement that lessens competition. 
A) Misuse of market power. 
B) Price fixing. 
C) A prohibited merger. 
D) An agreement that lessens competition.

Question 7

What is a 'secondary boycott'?

Accepted Answer

A) A situation that occurs when two or more business put pressure on a third business (which they have no dispute with) in order to encourage it not to deal with a fourth 'target' business that is the subject of the boycott. 
B) Any action by a business that prevents or is intended to prevent another business selling goods in the market. 
C) A per se offence under the Competition and Consumer Act 2010 (Cth). 
D) Conduct that is promoted in order to increase competition and fair play in the marketplace. 
A) A situation that occurs when two or more business put pressure on a third business (which they have no dispute with) in order to encourage it not to deal with a fourth 'target' business that is the subject of the boycott. 
B) Any action by a business that prevents or is intended to prevent another business selling goods in the market. 
C) A per se offence under the Competition and Consumer Act 2010 (Cth). 
D) Conduct that is promoted in order to increase competition and fair play in the marketplace.

Question 8

The fines payable for breaches of Part IV of the Competition and Consumer Act 2010 (Cth) are:

Accepted Answer

A) civil. 
B) criminal. 
C) determined based on a criminal standard of proof. 
D) determined by reference to the standard of proof of a reasonable person. 
A) civil. 
B) criminal. 
C) determined based on a criminal standard of proof. 
D) determined by reference to the standard of proof of a reasonable person.

Question 9

The Competition and Consumer Act 2010 (Cth) prohibits 'exclusive dealing'.Exclusive dealing occurs when:

Accepted Answer

A) Two or more business put pressure on a third business with which they have no dispute in order to encourage it not to deal with another targeted business. 
B) A business imposes restrictions on the capacity of another business to choose where and from whom it buys products. 
C) A business takes action that prevents or is intended to prevent another business selling goods in the market. 
D) There is an exclusionary provision in a business contract between competitors. 
A) Two or more business put pressure on a third business with which they have no dispute in order to encourage it not to deal with another targeted business. 
B) A business imposes restrictions on the capacity of another business to choose where and from whom it buys products. 
C) A business takes action that prevents or is intended to prevent another business selling goods in the market. 
D) There is an exclusionary provision in a business contract between competitors.

Question 10

Smash walks into the supermarket looking for a soft drink.Looking at the shelf, he sees Coca-Cola, Sprite, 7-Up, Pepsi, and Fanta.This range is indicative of which dimension of the soft drink market?

Accepted Answer

A) Temporal dimension 
B) Functional dimension 
C) Geographic dimension 
D) Product dimension 
A) Temporal dimension 
B) Functional dimension 
C) Geographic dimension 
D) Product dimension

Question 11

Which of the following is least likely to be price fixing in breach of CCA Part IV?

Accepted Answer

A) Competing petrol stations increase their petrol prices to the same amount at exactly the same time. 
B) Competing supermarkets discount their bread at the same time every day. 
C) Competing car rental companies simultaneously stop offering certain discounts. 
D) Competing surf shops agree to only discount their surfboard rental fees at certain times of day. 
A) Competing petrol stations increase their petrol prices to the same amount at exactly the same time. 
B) Competing supermarkets discount their bread at the same time every day. 
C) Competing car rental companies simultaneously stop offering certain discounts. 
D) Competing surf shops agree to only discount their surfboard rental fees at certain times of day.

Question 12

Which of the following functions is not carried out by the ACCC?

Accepted Answer

A) Monitoring prices in areas where effective competition is not sufficient to protect consumers. 
B) Authorising prohibited practices where public benefit outweighs public detriment. 
C) Determining whether certain conduct substantially lessens competition in a market. 
D) Monitoring compliance with the Corporations Law. 
A) Monitoring prices in areas where effective competition is not sufficient to protect consumers. 
B) Authorising prohibited practices where public benefit outweighs public detriment. 
C) Determining whether certain conduct substantially lessens competition in a market. 
D) Monitoring compliance with the Corporations Law.

Question 13

The prohibition of misuse of market power under the Competition and Consumer Act 2010 (Cth) is not designed to:

Accepted Answer

A) stop a business from having substantial market power. 
B) stop a business from misusing its market power. 
C) stop a business from misusing its power in a way that will adversely affect competitive processes. 
D) prevent predatory pricing. 
A) stop a business from having substantial market power. 
B) stop a business from misusing its market power. 
C) stop a business from misusing its power in a way that will adversely affect competitive processes. 
D) prevent predatory pricing.

Question 14

Which of the following is least likely to be price fixing in breach of CCA Part IV?

Accepted Answer

A) Competing businesses agreeing to set the same discounts. 
B) Competing businesses agreeing to increase their prices. 
C) Competing businesses agreeing to use a particular formula to set prices. 
D) Competing businesses agreeing to share information about their customers. 
A) Competing businesses agreeing to set the same discounts. 
B) Competing businesses agreeing to increase their prices. 
C) Competing businesses agreeing to use a particular formula to set prices. 
D) Competing businesses agreeing to share information about their customers.

Question 15

Morgan and Stanley are the owners of the two largest nail manufacturing businesses in Western Australia.Morgan and Stanley decide to merge to form a single business to take advantage of the economies of scale.In which of the following scenarios is the merger least likely to be objected to by the ACCC?

Accepted Answer

A) The merged business will be able to sustain significantly reduced prices that undercut smaller businesses for at least a year. 
B) The merged business will have a 65% market share; more than triple the market share of its nearest competitor. 
C) The merger will lead to an overall drop in the price of nails for consumers. 
D) The merger will result in substantial job losses for the employees of both companies. 
A) The merged business will be able to sustain significantly reduced prices that undercut smaller businesses for at least a year. 
B) The merged business will have a 65% market share; more than triple the market share of its nearest competitor. 
C) The merger will lead to an overall drop in the price of nails for consumers. 
D) The merger will result in substantial job losses for the employees of both companies.

Question 16

Bruno and Steph each operate petrol stations along the Great Ocean Road in Victoria.They are the only petrol stations for hundreds of miles along the road.Which of the following agreements between them is most likely to substantially lessen competition?

Accepted Answer

A) An agreement to pool some money together to erect barriers along a particularly dangerous stretch of the road. 
B) An agreement to buy coffee from the same supplier. 
C) An agreement to sell motor oil at the same price. 
D) An agreement to sell the same brand of muffins from their convenience stores. 
A) An agreement to pool some money together to erect barriers along a particularly dangerous stretch of the road. 
B) An agreement to buy coffee from the same supplier. 
C) An agreement to sell motor oil at the same price. 
D) An agreement to sell the same brand of muffins from their convenience stores.

Question 17

Which Act regulates competition in Australia?

Accepted Answer

A) Competition Regulation Act 2001 (Cth). 
B) Monopolies Act 1986 (Cth). 
C) Trade Practices Act 1974 (Cth). 
D) Competition and Consumer Act 2010 (Cth). 
A) Competition Regulation Act 2001 (Cth). 
B) Monopolies Act 1986 (Cth). 
C) Trade Practices Act 1974 (Cth). 
D) Competition and Consumer Act 2010 (Cth).

Question 18

Which of the following is not a necessary element of third-line forcing in breach of CCA Part IV?

Accepted Answer

A) There is one product the buyer desires and another product that is forced upon them. 
B) At least four parties are involved. 
C) The buyer cannot purchase the desired product without also purchasing the third party's product. 
D) The conduct has the effect of substantially lessening competition in the market. 
A) There is one product the buyer desires and another product that is forced upon them. 
B) At least four parties are involved. 
C) The buyer cannot purchase the desired product without also purchasing the third party's product. 
D) The conduct has the effect of substantially lessening competition in the market.

Question 19

Allie owns the largest chain of spa centres in Sydney.Whenever a new spa centre opens within 100 m of one of her centres, Allie drops her prices to less than cost in order to ensure that no one chooses to use the new centre.Allie appears to be engaging in:

Accepted Answer

A) a primary boycott. 
B) a secondary boycott. 
C) third line forcing. 
D) misuse of market power. 
A) a primary boycott. 
B) a secondary boycott. 
C) third line forcing. 
D) misuse of market power.

Question 20

The Trade Practices Tribunal described a market as having five different dimensions that it will consider when determining whether or not that market is competitive.It identified one of these dimensions as being the most crucial.Which is it?

Accepted Answer

A) The number and size distribution of different sellers and the degree of market concentration. 
B) Barriers to entry (i.e.the ease with which new businesses can enter and secure a valuable part of the market). 
C) The existence of extreme product differentiation and promotion. 
D) The character of vertical relationships with consumers and suppliers. 
A) The number and size distribution of different sellers and the degree of market concentration. 
B) Barriers to entry (i.e.the ease with which new businesses can enter and secure a valuable part of the market). 
C) The existence of extreme product differentiation and promotion. 
D) The character of vertical relationships with consumers and suppliers.

Which of the following types of secondary boycotts will contravene The Competition and Consumer Act 2010 (Cth)?

While the Competition and Consumer Act 2010 (Cth) does not comprehensively define a 'market', the Courts usually accept the wide definition of a market as:

Tom and Jack are competing suppliers of hair care products.Mary runs a hair salon and wants to sell hair care products at her salon.Which of the following is an example of exclusive dealing?

Which of the following is most likely to be an agreement that lessens competition in breach of CCA Part IV?

The ACCC is closely monitoring competition in the Australian wine industry.Which of the following factors is least likely to be emphasised by the ACCC in determining whether or not the wine market in Australia is competitive?

Which of the following cannot be authorised by ASIC?

What is a 'secondary boycott'?

The fines payable for breaches of Part IV of the Competition and Consumer Act 2010 (Cth) are:

The Competition and Consumer Act 2010 (Cth) prohibits 'exclusive dealing'.Exclusive dealing occurs when:

Smash walks into the supermarket looking for a soft drink.Looking at the shelf, he sees Coca-Cola, Sprite, 7-Up, Pepsi, and Fanta.This range is indicative of which dimension of the soft drink market?

Which of the following is least likely to be price fixing in breach of CCA Part IV?

Which of the following functions is not carried out by the ACCC?

The prohibition of misuse of market power under the Competition and Consumer Act 2010 (Cth) is not designed to:

Which of the following is least likely to be price fixing in breach of CCA Part IV?

Bruno and Steph each operate petrol stations along the Great Ocean Road in Victoria.They are the only petrol stations for hundreds of miles along the road.Which of the following agreements between them is most likely to substantially lessen competition?

Which Act regulates competition in Australia?

Which of the following is not a necessary element of third-line forcing in breach of CCA Part IV?

Allie owns the largest chain of spa centres in Sydney.Whenever a new spa centre opens within 100 m of one of her centres, Allie drops her prices to less than cost in order to ensure that no one chooses to use the new centre.Allie appears to be engaging in:

The Trade Practices Tribunal described a market as having five different dimensions that it will consider when determining whether or not that market is competitive.It identified one of these dimensions as being the most crucial.Which is it?

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Exam 12: Dealing With Competitors

Which of the following types of secondary boycotts will contravene The Competition and Consumer Act 2010 (Cth)?

While the Competition and Consumer Act 2010 (Cth) does not comprehensively define a 'market', the Courts usually accept the wide definition of a market as:

Tom and Jack are competing suppliers of hair care products.Mary runs a hair salon and wants to sell hair care products at her salon.Which of the following is an example of exclusive dealing?

Which of the following is most likely to be an agreement that lessens competition in breach of CCA Part IV?

The ACCC is closely monitoring competition in the Australian wine industry.Which of the following factors is least likely to be emphasised by the ACCC in determining whether or not the wine market in Australia is competitive?

Which of the following cannot be authorised by ASIC?

What is a 'secondary boycott'?

The fines payable for breaches of Part IV of the Competition and Consumer Act 2010 (Cth) are:

The Competition and Consumer Act 2010 (Cth) prohibits 'exclusive dealing'.Exclusive dealing occurs when:

Smash walks into the supermarket looking for a soft drink.Looking at the shelf, he sees Coca-Cola, Sprite, 7-Up, Pepsi, and Fanta.This range is indicative of which dimension of the soft drink market?

Which of the following is least likely to be price fixing in breach of CCA Part IV?

Which of the following functions is not carried out by the ACCC?

The prohibition of misuse of market power under the Competition and Consumer Act 2010 (Cth) is not designed to:

Which of the following is least likely to be price fixing in breach of CCA Part IV?

Bruno and Steph each operate petrol stations along the Great Ocean Road in Victoria.They are the only petrol stations for hundreds of miles along the road.Which of the following agreements between them is most likely to substantially lessen competition?

Which Act regulates competition in Australia?

Which of the following is not a necessary element of third-line forcing in breach of CCA Part IV?

Allie owns the largest chain of spa centres in Sydney.Whenever a new spa centre opens within 100 m of one of her centres, Allie drops her prices to less than cost in order to ensure that no one chooses to use the new centre.Allie appears to be engaging in:

The Trade Practices Tribunal described a market as having five different dimensions that it will consider when determining whether or not that market is competitive.It identified one of these dimensions as being the most crucial.Which is it?

Business and the Law

The Australian Legal System

Politicians and Judges

How to Find, Understand and Use the Law

Deliberately Causing Harm

Carelessly Causing Harm

Contract Law: Formation of the Contract

Contract Law: Terms of the Contract

Contract Law: Enforcement of the Contract

Contract Law: Working With Agents

Dealing With Consumers

Protecting Ip

Managing a Business: Start-Up

Managing a Business: Business Ownership

Managing a Business: Companies and Corporate Governance

Managing a Business: Making Payments and Recovering Debts

Managing a Business: Insurance and Taxes

Managing a Business: Employing Workers

Managing a Business: Closing Down

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