Explain the Meaning and Importance of Contracting Out

question 27

Essay

Explain the meaning and importance of contracting out. Describe the relevant labour law relating to this issue and its implications for unions and employers negotiating a collective agreement.

---

Definitions:

Exclusive Dealing

A sales strategy where a seller requires a buyer to purchase only its products and not those of competitors.

Vertical Price Fixing

An illegal practice where parties at different levels of the same supply chain (such as manufacturers and retailers) agree to set and maintain prices at a certain level.

Minimum Retail Price

The lowest price at which a retailer can sell a product, often set by the manufacturer to maintain market value.

Independent Buyers

Individuals or entities that make purchasing decisions autonomously, without being influenced by sellers.