Darlink Dresses Pty Ltd Distributes a Range of Exclusive Women's

question 6

Multiple Choice

Darlink Dresses Pty Ltd distributes a range of exclusive women's clothing to retail stores.Which of the following activities by Darlink is likely to breach s 48 of the Competition and Consumer Act which prohibits resale price maintenance?

• A)It advises all the Australian retailers: 'Darlink will act to protect its brand image in the strongest way if retailers do not keep to our RRP.'
• B)It refuses to supply one retailer because it sold dresses at 10 per cent below the RRP.
• C)It offers three retailers special discounts to ensure the clothes are sold at the RRP.
• D)All of the above

---

Definitions:

Income

Financial gain derived from various sources such as employment, investments, or proprietorship, contributing to an individual's wealth.

Price

The monetary cost anticipated, called for, or disbursed in payment for an object.

Compensating Variation

An economic concept representing the amount of additional income an individual would need to maintain the same level of utility after a price change.

Utility Function

A mathematical representation used in economics to model the satisfaction or benefit a consumer derives from consuming goods and services.