Acme Corp Is a Widget Manufacturer That Carries on Business

question 4

Essay

Acme Corp is a widget manufacturer that carries on business in Edmonton.Until recently,it sold its products only within the province of Alberta.However,it now wants to sell to customers in Manitoba as well.It is concerned,however,about the effect of the Alberta Contracts Enforcement Act.That statute says that only specially licenced companies are entitled to sell widgets under "contracts that are made within the province of Alberta." Acme Corp is not specially licenced.The statute does not,however,affect contracts that are created outside of Alberta.Bearing in mind the general rules regarding offers and acceptances,suggest ways in which Acme Corp can go ahead with its proposal without violating the Contracts Enforcement Act.

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good or service and the actual price they receive.

Producer Surplus

The difference between what producers are willing to accept for a good or service and what they actually receive in the market.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, indicating the utility gained from the purchase.

Price Ceiling

A government-imposed limit on how high a price can be charged on a product or service.