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John buys the organic tomatoes used in his restaurant from OrganicVeg Supplies Ltd. When John complains to OrganicVeg Supplies about a recent price increase, OrganicVeg
- John buys the organic tomatoes used in his restaurant from OrganicVeg Supplies Ltd. When John complains to OrganicVeg Supplies about a recent price increase, OrganicVeg Supplies offers John a special deal: John will only have to pay $6 per kilo for organic tomatoes for the next 12 months, but he must commit to buying all of his organic fruit from Chrome Farms. OrganicVeg Supplies does not receive any commission from the Chrome sales, and John is the only restaurant owner to be given such an arrangement.
- Is this arrangement prohibited by Part IV of the CCA? Why and Why not?
- Would your answer be different if the arrangement was that John would buy all of his organic fruit from OrganicVeg Supplies?
- If either arrangement is prohibited, could authorisation be sought from the ACCC? How?
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