16.7
Exercise
Learning pathways LEVEL1 1, 2, 3
LEVEL2
LEVEL3 6, 7, 8, 9, 10
4, 5
REMEMBER AND UNDERSTAND 1. Government regulators can take legal action if a person is injured after a supplier fails to remove a banned product from sale. True or False? 2. How can consumers play a role in product safety? A. Buy fewer products B. Only buy products from expensive stores C. Report faulty products to the business or the government body D. Complain about the product on social media 3. Identify two bodies established to maintain product safety. 4. Brieþy describe each of the following. a. Price ýxing
b. Predatory pricing c. Exclusive dealing d. Resale price maintenance
5. Explain why competition between businesses is beneýcial for consumers. 6. Describe the role of each of the following in ensuring product safety. a. Industry regulators b. Customs and quarantine c. Local government authorities ANALYSE AND APPLY 7. Explain how you expect the ACCC to deal with each of the following situations. a. The only two garden maintenance businesses in a country town decide to merge and form one business. b. Five petrol station owners along a busy road meet every week to decide what prices to charge. c. A company selling electrical goods gives stores a list of suggested prices for its products. It refuses to sell to stores unless they stick to those prices. d. A big supermarket in the same mall as a small supermarket always prices its products 5 per cent lower. When the small store lowers prices, the big one lowers them even more. 8. Coles and Woolworths often receive criticism for selling their own brand of milk at a very low price. Discuss why you think they do this and whether it should be allowed. 9. What action can government regulators take if a person is injured after a supplier fails to remove a banned product from sale? EVALUATE AND COMMUNICATE 10. Evaluate the role of education in product safety. Answers and sample responses for this topic are available online.
TOPIC16 How markets work 579
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