Federal Statue That Stimulate The Competition In The Market

1. The competition Act is a Federal Statue that stimulate the competition in the market. It is of interest to business, because it gives opportunities to new businesses and entrepreneurs to enter the marketplace. Also, it helps to eliminate the monopoly companies by bringing new ideas and diversity of products. In addition, it helps small businesses against the big companies who goes against them. Furthermore, businesses who have been victimized by anti-competitive behaviour has the right for lawsuits that lead to damages (179-180). For example: I have the right of opening a convenience store and be competitive against Mac’s the big convenience franchise, and sell similar products or come with my own new ideas.

2. The statue applies to both

The business right under the statue is the ability to make a compliant to the competition of Bureau in case of anti-competitive behaviour (185). Businesses before their rights has obligations they need to follow. These obligations are restrictive trade practices, promotion and advertising products. The first obligation can be divided into three categories. First, a company should be careful with its dominant position, and not use their power to defeat smaller companies, for example with pricing. Also, companies should be careful with margining with others and achieving too much power. Second, a company should be careful from working secretly with other companies (conspiracy) to not prevent and limit transporting, producing, manufacturing, etc., from others. Third, a business should be careful when dealing with consumers. The business must see its costumers as even and give them the same deals and offers as it gives to other consumers. The business must see his competitors as even and not prevent their mutual clients from not buying goods from them. Also, they need to be careful from not enforcing the client from buying goods that they do not want. It must not restrict to whom the consumer will sell these products. Businesses must be very careful with price discrimination, from lowering their prices really low to drive competitors out of the market, and trying to control the final price for retail stores (181-185). The second obligation is that a business should not advertise false statements, not sell goods for original price if it indicated that the item is on special or reduced price, and not lie to consumers about the performance of a product