The ten hotels in Ottawa with 5 star ratings were each asked separately to give the federal government a price that it would charge per night for people associated with the federal government staying at their hotel
The 10 hotels then contacted each other and agreed that they would each tell the federal government that the special government room rate would be $110 per night. As a result which of the following statements is TRUE? The hotels
A) did nothing illegal as they have the right to discuss their pricing strategies
B) are guilty of an offence under the Civil Reviewable Matters section of the Competition Act
C) are guilty of abuse of dominant position
D) are guilty of bid rigging
E) could face penalties of up to 20 years in jail and maximum fines of $10 million
D
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Ruth Company produces 1,000 units of a necessary component with the following costs:
Direct Materials $27,000 Direct Labor 16,000 Variable Overhead 4,000 Fixed Overhead 7,000 None of Ruth Company's fixed overhead costs can be reduced, but another product could be made that would increase profit contribution by $8,000 if the components were acquired externally. If cost minimization is the major consideration and the company would prefer to buy the components, what is the maximum external price that Ruth Company would be willing to accept to acquire the 1,000 units externally? a) $46,000 b) $51,000 c) $58,000 d) $55,000
Vicarious liability is
A. a tort that allows a plaintiff to sue for the defendant interfering in contractual relations between the plaintiff and another party B. a tort that allows a plaintiff to sue a superior for the negligent acts of a subordinate C. a tort that allows a plaintiff to sue a superior for all torts committed by a subordinate D. Both B and C are correct.