Exam 32: Restrictive Trade Practices

Regulation of trade practices is a matter of provincial jurisdiction.

The trade practices restricted under the Competition Act have arisen as a reflection of values of our political and economic society.Discuss the reasons for the existence of regulation of various practices and raise any concerns you may have with regard to competition regulation.

Cisco developed a carburetor for automobiles,which he called the "CiscoCarb".He advertised the carburetor in a national automobile magazine in a full-page advertisement under a caption that read: "Proven Performance-9L/100km.of gas in any car." The advertisement offered the carburetor for $100 on a 30-day,money back guarantee.Cisco would not have violated the Competition Act,because his performance claim was made in a unit of measurement other than metric.

A breach of the Competition Act confined to one province is a matter to be heard before a District or County Court of that province.

Buns Bakery sold bread and cakes to Peggy's Grocery under an agreement whereby Peggy would not retail the goods for less than the price printed on the wrapper of the products.By their agreement,Buns Bakery would provide Peggy's Grocery with an extra 5% discount at the end of each month,based upon the volume sold at the stipulated retail price during the month.The agreement between Buns Bakery and Peggy is an agreement in restraint of trade.