Big Brum plc, which has a dominant position in its markets, has received notice that it is being investigated under Chapter 1 of the Competition Act 1998.
The following activities have been colluded in by Big Brum plc:
Activity 1 – Limiting production markets
Activity 2 – Agreeing with another organisation to limit competition
Activity 3 – Restricting technical developments
Which of the activities may, individually, have given rise to such a notice being given to Big Brum plc?
Select ONE answer:
- Activity 1 only
- Activity 2 only
- Activity 3 only
- Activities 1, 2 and 3
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 2
- Not correct
- Correct == > Activity 1 and Activity 3- No (this is an abuse of a dominant position, covered by Chapter Il of the Act). Activity 2 – Agreeing with another organisation to limit competition – Yes
- Not correct
- Not correct
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