Buns Bakery sold bread and cakes to Peggy's Grocery under an agreement whereby Peggy would not retail the goods for less than the price printed on the wrapper of the products. By their agreement, Buns Bakery would provide Peggy's Grocery with an extra 5% discount at the end of each month, based upon the volume sold at the stipulated retail price during the month. Both Buns Bakery and Peggy's Grocery would appear to have acted in violation of the Competition Act by entering into their agreement.

Question

Quizplus · Accepted Answer

The agreement between Buns Bakery and Peggy's Grocery likely violates the Competition Act because it involves price fixing, where the supplier (Buns Bakery) sets the minimum resale price for the retailer (Peggy's Grocery), which restricts competition and can be considered anti-competitive behavior.

Buns Bakery Sold Bread and Cakes to Peggy's Grocery Under