Bill and Ted Are Engaged in the Business of Selling

question 6

Multiple Choice

Bill and Ted are engaged in the business of selling bottled water.Bill's company operates in northern Ontario.Ted's company operates in southwestern Ontario.They are the main suppliers of bottled water in their respective areas.Ted decides to open a new office in northern Ontario in order to compete directly with Bill.Prior to the office opening,Bill and Ted bump into each other at a convention.They have a short discussion about business over dinner and agree orally that neither one of them will ever try and move into the other's existing territory.They shake hands and leave.The nature of the agreement entered into by Bill and Ted

• A)constitutes abuse of dominant position.
• B)constitutes the offence of bid-rigging.
• C)constitutes the anti-competitive behavior of predatory pricing.
• D)constitutes a breach of section 45 of the Competition Act.
• E)is an offence under section 46 of the Competition Act implementing in Canada a directive or instruction from a person outside Canada.

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Definitions:

Actual Results

The real, measured outcomes of financial or operational activities within a given period.

Fixed Budget

A financial plan that does not change or fluctuate with the volume of business activity.

Standard Costs

Predetermined costs for the production of goods or services, used as benchmarks to measure actual performance and manage costs.

Actual Costs

Actual costs are the genuine expenditures incurred by a company, as opposed to estimated costs, during a given period for production, services, or other activities.