In Order for the Competition Bureau to Intervene in Circumstances

question 66

Multiple Choice

In order for the Competition Bureau to intervene in circumstances where a distributor appears to have set prices that are unreasonably lower than those of one or more competing suppliers in the market,which of the following must be established?

• A) Losses will be recouped by the discounter using subsequent price increases.
• B) The civil burden of proof must be met to attract penalties.
• C) Differences must be shown to be a direct reflection of cost differentials.
• D) Upward pressure is being exerted on the retail price of goods.

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Definitions:

Foreign Subsidiary

A foreign subsidiary is a company owned or controlled by another company, referred to as the parent company, which is located in a country different from the subsidiary.

Dollar/Peso Exchange Rate

The rate at which the currency of the United States (dollar) can be exchanged for the currency of countries using the peso.

Short Run Exchange Rate Risk

Short run exchange rate risk pertains to the potential for losses that investors or companies face due to fluctuations in the exchange rates between currencies in the near term.

Custom-Designed Refrigerators

Refrigerators that are specially designed to meet specific customer requirements, differentiating them from standard models.