Bruce makes boomerangs in western New South Wales and sells them to tourists who travel to the town where his boomerang shop is located. After he hurt his arm, a number of new Indigenous Australian boomerang makers moved into the town and started supplying boomerangs to tourists. As a result of a successful marketing campaign, as well as an unexpected amount of publicity following the ACCC's interest in Bruce's activities, the boomerang business is now growing quickly. Bruce contacts the other boomerang makers and tells them that, as he was the first to make boomerangs in the town and still has a substantial share of the market, he is prepared to make an arrangement that will benefit them all. Eventually Bruce and his competitors all agree to each make only 1000 boomerangs a month and sell them for no less than $250 each. They also agree that Bruce should continue with his boomerang throwing demonstrations, and that they will send all of their customers to Bruce for lessons so their customers can learn how to properly throw their new boomerangs.

1.What restrictive trade practices prohibitions have Bruce and the other boomerang suppliers contravened by agreeing to fix the price and number of boomerangs they will make each month?

2. What restrictive trade practices prohibitions have Bruce and the other boomerang suppliers contravened by agreeing to let Bruce exclusively provide boomerang throwing classes?

3. What action could Bruce take to have these arrangements approved by the ACCC? What is the likelihood of his application being successful?

4. If his application is not successful, what are some of the penalties that the Federal Court might impose if the ACCC successfully prosecutes Bruce and the other boomerang suppliers in town for breach of the competition provisions in theCompetition and Consumer Act?