Prado Shoes Inc manufactures very expensive, high-quality womens shoes, which it sells to retail stores throughout Canada.
Question:
Prado Shoes Inc manufactures very expensive, high-quality women’s shoes, which it sells to retail stores throughout Canada. Universal Shoes Inc has a large chain of shoe stores in Alberta. One of its marketing strategies is to compete aggressively on price, even when pricing its Prado shoes. Prado is unhappy that Universal is discounting its shoes because it feels discounting tarnishes Prado’s brand image as a high-end shoe. It also makes Prado’s other shoe retailer customers unhappy. Prado tells Universal that it has to sell Prado’s shoes at or above the suggested retail price or Prado will stop selling to Universal. Universal is unhappy about this demand. Is there anything that Universal can do about it under the Competition Act?
Step by Step Answer:
Managing the Law The Legal Aspects of Doing Business
ISBN: 978-0132164429
4th edition
Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer