Question 1

Authorisation under the Competition and Consumer Act 2010 (Cth) Part IV is:

Accepted Answer

A) an administrative procedure whereby a business notifies the ACCC about an action that would otherwise be a contravention of the CCA and attains immunity from civil proceedings. 
B) an administrative procedure whereby the ACCC authorises conduct that would otherwise be a contravention of the CCA, on public benefit grounds 
C) a judicial procedure in which the Court authorises conduct that would otherwise be a contravention of the CCA on legal grounds. 
D) a judicial procedure in which the Court gives the notifier immunity from civil proceedings in respect of action that would otherwise be a contravention of the CCA. 
A) an administrative procedure whereby a business notifies the ACCC about an action that would otherwise be a contravention of the CCA and attains immunity from civil proceedings. 
B) an administrative procedure whereby the ACCC authorises conduct that would otherwise be a contravention of the CCA, on public benefit grounds 
C) a judicial procedure in which the Court authorises conduct that would otherwise be a contravention of the CCA on legal grounds. 
D) a judicial procedure in which the Court gives the notifier immunity from civil proceedings in respect of action that would otherwise be a contravention of the CCA.

Question 2

There were three important changes to the law introduced by the Competition Policy Reform Act 1995 (Cth).Which of the following is not one of them?

Accepted Answer

A) It extended the scope of the Trade Practices Act 1974 (Cth) to all Australian businesses and professions. 
B) It merged the Trade Practices Commission and the Prices Surveillance Authority to form the Australian Competition and Consumer Commission. 
C) It established an access regime to allow third parties access to essential facilities. 
D) It set up the office of the Consumer Ombudsman. 
A) It extended the scope of the Trade Practices Act 1974 (Cth) to all Australian businesses and professions. 
B) It merged the Trade Practices Commission and the Prices Surveillance Authority to form the Australian Competition and Consumer Commission. 
C) It established an access regime to allow third parties access to essential facilities. 
D) It set up the office of the Consumer Ombudsman.

Question 3

Sonny (Australia) Ltd, a manufacturer of electronic goods, has been found to have engaged in resale price maintenance in breach of Part IV of the CCA.Which of the following is not a possible consequence?

Accepted Answer

A) An injunction prohibiting Sonny from engaging in such conduct in future. 
B) An order that Sonny pay compensation to its customers. 
C) A fine. 
D) A criminal penalty. 
A) An injunction prohibiting Sonny from engaging in such conduct in future. 
B) An order that Sonny pay compensation to its customers. 
C) A fine. 
D) A criminal penalty.

Question 4

Madam Marple bakes extremely popular cookies that she sells to various cafes.She does not want people to think her cookies are of a poor quality, so she sells her cookies on the condition that the cafes not sell her cookies to customers for less than $5 a cookie.This is an example of:

Accepted Answer

A) a primary boycott. 
B) misuse of market power. 
C) price fixing. 
D) resale price maintenance. 
A) a primary boycott. 
B) misuse of market power. 
C) price fixing. 
D) resale price maintenance.

Question 5

Which of the following is not a per se offence under the Competition and Consumer Act 2010 (Cth) and is therefore not prohibited unless it has the effect of substantially lessening competition?

Accepted Answer

A) Primary boycotts. 
B) Secondary boycotts. 
C) Price fixing. 
D) Resale price maintenance. 
A) Primary boycotts. 
B) Secondary boycotts. 
C) Price fixing. 
D) Resale price maintenance.

Question 6

In May 2020, Kiki's Nail Bar opens on High Street.Her shop is an instant hit because Kiki offers manicures for $5 a session, significantly cheaper than her competitors on that street whose manicures are $50 a session.In 2010, after a secret meeting with some other shop owners, Kiki suddenly raises her prices to $30 a session, and other shops simultaneously lower their prices to $30 a session.This is most likely an example of:

Accepted Answer

A) price fixing. 
B) resale price maintenance. 
C) misuse of market power. 
D) a primary boycott. 
A) price fixing. 
B) resale price maintenance. 
C) misuse of market power. 
D) a primary boycott.

Question 7

What is the correct name for the type of actions that are only prohibited under the Competition and Consumer Act 2010 (Cth) Part IV if they have the effect of substantially lessening competition?

Accepted Answer

A) Per se offences. 
B) Conditional offences. 
C) Strict offences. 
D) Contingent offences. 
A) Per se offences. 
B) Conditional offences. 
C) Strict offences. 
D) Contingent offences.

Question 8

Are mergers and acquisitions prohibited by the Competition and Consumer Act 1010 (Cth)?

Accepted Answer

A) Yes, both are prohibited. 
B) Acquisitions are, but mergers are not. 
C) Mergers are, but acquisitions are not. 
D) Both are prohibited if they would have the effect of reducing competition in the market. 
A) Yes, both are prohibited. 
B) Acquisitions are, but mergers are not. 
C) Mergers are, but acquisitions are not. 
D) Both are prohibited if they would have the effect of reducing competition in the market.

Question 9

Sonny (Australia) Ltd is a manufacturer of electronic goods.Which of the following is an example of resale price maintenance?

Accepted Answer

A) Three retailers agree to sell all Sonny goods at 50% more than cost price. 
B) Sonny refuses to supply its goods to any retailer who engages in loss leading. 
C) Sonny supplies its goods to retailers on the condition that they do not sell the products below the prices set by Sonny. 
D) Sonny refuses to supply its goods to a particular retailer after they breach a condition not to sell Sonny products above a fixed price. 
A) Three retailers agree to sell all Sonny goods at 50% more than cost price. 
B) Sonny refuses to supply its goods to any retailer who engages in loss leading. 
C) Sonny supplies its goods to retailers on the condition that they do not sell the products below the prices set by Sonny. 
D) Sonny refuses to supply its goods to a particular retailer after they breach a condition not to sell Sonny products above a fixed price.

Question 10

In determining whether conduct by a business has the effect of substantially lessening competition, which of the following issues need not be considered?

Accepted Answer

A) Whether there is a relevant market. 
B) Whether the conduct did or was likely to lessen competition in the market. 
C) Whether the purpose of the conduct was likely to lessen competition. 
D) Whether competition within the market is a desirable goal. 
A) Whether there is a relevant market. 
B) Whether the conduct did or was likely to lessen competition in the market. 
C) Whether the purpose of the conduct was likely to lessen competition. 
D) Whether competition within the market is a desirable goal.

Question 11

ASIC cannot authorise:

Accepted Answer

A) price fixing. 
B) an agreement that lessens competition. 
C) a misuse of market power. 
D) a boycott or merger. 
A) price fixing. 
B) an agreement that lessens competition. 
C) a misuse of market power. 
D) a boycott or merger.

Question 12

Conduct that amounts to full line forcing and third line forcing is prohibited by the Competition and Consumer Act 2010 (Cth).Which of the following statements is not true?

Accepted Answer

A) Both kinds of conduct are prohibited only if they have the effect of substantially lessening competition in the marketplace. 
B) Both kinds of conduct are forms of exclusive dealing. 
C) Both kinds of conduct have the effect of imposing restrictions on another's freedom to choose where from whom and how they buy products. 
D) Both kinds of conduct occur when a business makes the supply of its products conditional upon a customer also purchasing the products of another business. 
A) Both kinds of conduct are prohibited only if they have the effect of substantially lessening competition in the marketplace. 
B) Both kinds of conduct are forms of exclusive dealing. 
C) Both kinds of conduct have the effect of imposing restrictions on another's freedom to choose where from whom and how they buy products. 
D) Both kinds of conduct occur when a business makes the supply of its products conditional upon a customer also purchasing the products of another business.

Question 13

According to the ACCC, a misuse of market power by a business is generally not the type of conduct that:

Accepted Answer

A) raises the costs of entry into the market. 
B) adversely affects the competitive process in the market. 
C) adversely affects consumers in terms of price, quality availability choice or convenience. 
D) can be explained in terms of efficiency or genuine commercial rivalry. 
A) raises the costs of entry into the market. 
B) adversely affects the competitive process in the market. 
C) adversely affects consumers in terms of price, quality availability choice or convenience. 
D) can be explained in terms of efficiency or genuine commercial rivalry.

Question 14

Tom and Rey both own supermarkets.One of the products that they sell in their supermarkets is milk.Which of the following is an example of a primary boycott?

Accepted Answer

A) Tom and Rey agree to both buy milk from Brown Cow Farm. 
B) Tom and Rey agree to both stop buying milk from Black and White Cow Farm. 
C) Tom and Rey agree to both stop buying milk because of mad cow disease. 
D) Tom and Rey agree to both stop drinking milk. 
A) Tom and Rey agree to both buy milk from Brown Cow Farm. 
B) Tom and Rey agree to both stop buying milk from Black and White Cow Farm. 
C) Tom and Rey agree to both stop buying milk because of mad cow disease. 
D) Tom and Rey agree to both stop drinking milk.

Question 15

A business that takes steps or makes an agreement that is designed to maintain or control the price of goods is engaging in:

Accepted Answer

A) price fixing. 
B) price inflation. 
C) boycotting. 
D) price leadership. 
A) price fixing. 
B) price inflation. 
C) boycotting. 
D) price leadership.

Question 16

Melissa and Janet are retail florists in the same town.Farm Fresh Flowers is a new flower farm that has opened in the town.Which of the following is an example of a secondary boycott?

Accepted Answer

A) Melissa and Janet threaten not to purchase from their long time wholesaler Nancy unless Nancy agrees not to supply her flowers to Farm Fresh Flowers. 
B) Melissa and Janet threaten not to purchase any flowers from Farm Fresh Flowers. 
C) Melissa and Janet threaten to tell all their customers that Farm Fresh Flowers only sells wilted and dried flowers. 
D) Melissa and Janet threaten to never speak to the owners of Farm Fresh Flowers. 
A) Melissa and Janet threaten not to purchase from their long time wholesaler Nancy unless Nancy agrees not to supply her flowers to Farm Fresh Flowers. 
B) Melissa and Janet threaten not to purchase any flowers from Farm Fresh Flowers. 
C) Melissa and Janet threaten to tell all their customers that Farm Fresh Flowers only sells wilted and dried flowers. 
D) Melissa and Janet threaten to never speak to the owners of Farm Fresh Flowers.

Question 17

The difficulties of establishing the extent of a particular 'market' under Part IV of the Competition and Consumer Act 2010 (Cth) are numerous.This is because:

Accepted Answer

A) the economy is divided into a large number of discrete markets. 
B) trading activities cannot be neatly fitted into clearly defined markets. 
C) the outer limits of particular markets are very clear but are different in scope from one another. 
D) one market tends not to overlap another. 
A) the economy is divided into a large number of discrete markets. 
B) trading activities cannot be neatly fitted into clearly defined markets. 
C) the outer limits of particular markets are very clear but are different in scope from one another. 
D) one market tends not to overlap another.

Question 18

The role that was once performed by Price Surveillance Authority ('PSA') is now undertaken by the Australian Competition and Consumer Commission ('ACCC').That role is:

Accepted Answer

A) to monitor corporations. 
B) to reduce competition in the marketplace to ensure that consumers get the best prices. 
C) to monitor prices in areas where competition is not effective to protect consumers and ensure efficient prices 
D) to promote mergers, acquisitions and monopolies in the marketplace and ensure that all businesses are treated equitably. 
A) to monitor corporations. 
B) to reduce competition in the marketplace to ensure that consumers get the best prices. 
C) to monitor prices in areas where competition is not effective to protect consumers and ensure efficient prices 
D) to promote mergers, acquisitions and monopolies in the marketplace and ensure that all businesses are treated equitably.

Question 19

A few years ago anti-trust proceedings (proceedings for uncompetitive conduct) were brought against Microsoft in the USA.The company was alleged to have abused its monopoly in the desktop operating systems market.The Court decided that:

Accepted Answer

A) there was ample and adequate scope for any potential competitor to develop a viable alternative to Windows 
B) there was a 'barrier to entry' that made it prohibitively expensive for a potential competitor to develop into a viable alternative to Windows. 
C) Microsoft had a healthy monopoly that delivered an effective and cost efficient product to consumers. 
D) it was expensive but viable for potential competitors to develop an alternative to Windows and therefore the market was sufficiently competitive. 
A) there was ample and adequate scope for any potential competitor to develop a viable alternative to Windows 
B) there was a 'barrier to entry' that made it prohibitively expensive for a potential competitor to develop into a viable alternative to Windows. 
C) Microsoft had a healthy monopoly that delivered an effective and cost efficient product to consumers. 
D) it was expensive but viable for potential competitors to develop an alternative to Windows and therefore the market was sufficiently competitive.

Question 20

What is predatory pricing within the context of the Competition and Consumer Act 2010 (Cth)?

Accepted Answer

A) Fixing, controlling or maintaining the price of goods. 
B) Charging unrealistically low prices to try to force competitors out of the market. 
C) Refusing to supply a product unless the buyer agrees to not to buy or resupply products of a competitor. 
D) Refusing to supply a product to a buyer unless the buyer fixes a minimum price below which the product cannot be sold. 
A) Fixing, controlling or maintaining the price of goods. 
B) Charging unrealistically low prices to try to force competitors out of the market. 
C) Refusing to supply a product unless the buyer agrees to not to buy or resupply products of a competitor. 
D) Refusing to supply a product to a buyer unless the buyer fixes a minimum price below which the product cannot be sold.

Authorisation under the Competition and Consumer Act 2010 (Cth) Part IV is:

There were three important changes to the law introduced by the Competition Policy Reform Act 1995 (Cth).Which of the following is not one of them?

Sonny (Australia) Ltd, a manufacturer of electronic goods, has been found to have engaged in resale price maintenance in breach of Part IV of the CCA.Which of the following is not a possible consequence?

Madam Marple bakes extremely popular cookies that she sells to various cafes.She does not want people to think her cookies are of a poor quality, so she sells her cookies on the condition that the cafes not sell her cookies to customers for less than $5 a cookie.This is an example of:

Which of the following is not a per se offence under the Competition and Consumer Act 2010 (Cth) and is therefore not prohibited unless it has the effect of substantially lessening competition?

What is the correct name for the type of actions that are only prohibited under the Competition and Consumer Act 2010 (Cth) Part IV if they have the effect of substantially lessening competition?

Are mergers and acquisitions prohibited by the Competition and Consumer Act 1010 (Cth)?

Sonny (Australia) Ltd is a manufacturer of electronic goods.Which of the following is an example of resale price maintenance?

In determining whether conduct by a business has the effect of substantially lessening competition, which of the following issues need not be considered?

ASIC cannot authorise:

Conduct that amounts to full line forcing and third line forcing is prohibited by the Competition and Consumer Act 2010 (Cth).Which of the following statements is not true?

According to the ACCC, a misuse of market power by a business is generally not the type of conduct that:

Tom and Rey both own supermarkets.One of the products that they sell in their supermarkets is milk.Which of the following is an example of a primary boycott?

A business that takes steps or makes an agreement that is designed to maintain or control the price of goods is engaging in:

Melissa and Janet are retail florists in the same town.Farm Fresh Flowers is a new flower farm that has opened in the town.Which of the following is an example of a secondary boycott?

The difficulties of establishing the extent of a particular 'market' under Part IV of the Competition and Consumer Act 2010 (Cth) are numerous.This is because:

The role that was once performed by Price Surveillance Authority ('PSA') is now undertaken by the Australian Competition and Consumer Commission ('ACCC').That role is:

A few years ago anti-trust proceedings (proceedings for uncompetitive conduct) were brought against Microsoft in the USA.The company was alleged to have abused its monopoly in the desktop operating systems market.The Court decided that:

What is predatory pricing within the context of the Competition and Consumer Act 2010 (Cth)?

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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Exam 12: Dealing With Competitors

Authorisation under the Competition and Consumer Act 2010 (Cth) Part IV is:

There were three important changes to the law introduced by the Competition Policy Reform Act 1995 (Cth).Which of the following is not one of them?

Sonny (Australia) Ltd, a manufacturer of electronic goods, has been found to have engaged in resale price maintenance in breach of Part IV of the CCA.Which of the following is not a possible consequence?

Madam Marple bakes extremely popular cookies that she sells to various cafes.She does not want people to think her cookies are of a poor quality, so she sells her cookies on the condition that the cafes not sell her cookies to customers for less than $5 a cookie.This is an example of:

Which of the following is not a per se offence under the Competition and Consumer Act 2010 (Cth) and is therefore not prohibited unless it has the effect of substantially lessening competition?

What is the correct name for the type of actions that are only prohibited under the Competition and Consumer Act 2010 (Cth) Part IV if they have the effect of substantially lessening competition?

Are mergers and acquisitions prohibited by the Competition and Consumer Act 1010 (Cth)?

Sonny (Australia) Ltd is a manufacturer of electronic goods.Which of the following is an example of resale price maintenance?

In determining whether conduct by a business has the effect of substantially lessening competition, which of the following issues need not be considered?

ASIC cannot authorise:

Conduct that amounts to full line forcing and third line forcing is prohibited by the Competition and Consumer Act 2010 (Cth).Which of the following statements is not true?

According to the ACCC, a misuse of market power by a business is generally not the type of conduct that:

Tom and Rey both own supermarkets.One of the products that they sell in their supermarkets is milk.Which of the following is an example of a primary boycott?

A business that takes steps or makes an agreement that is designed to maintain or control the price of goods is engaging in:

Melissa and Janet are retail florists in the same town.Farm Fresh Flowers is a new flower farm that has opened in the town.Which of the following is an example of a secondary boycott?

The difficulties of establishing the extent of a particular 'market' under Part IV of the Competition and Consumer Act 2010 (Cth) are numerous.This is because:

The role that was once performed by Price Surveillance Authority ('PSA') is now undertaken by the Australian Competition and Consumer Commission ('ACCC').That role is:

A few years ago anti-trust proceedings (proceedings for uncompetitive conduct) were brought against Microsoft in the USA.The company was alleged to have abused its monopoly in the desktop operating systems market.The Court decided that:

What is predatory pricing within the context of the Competition and Consumer Act 2010 (Cth)?

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

Filters