If a corporation attempts to fix base prices for its goods by setting up separate wholly owned corporations in each region to do the selling of those goods at a fixed price, the conspiracy of these corporations to do so with the parent may not be attacked under the Competition Act.

Question

Quizplus · Accepted Answer

The arrangement described constitutes a form of price fixing, which is illegal under competition laws in many jurisdictions, including those enforced under the Competition Act. The fact that the entities involved are wholly owned subsidiaries does not exempt them from these laws, as they are still considered separate legal entities engaging in a conspiracy to fix prices.

If a Corporation Attempts to Fix Base Prices for Its