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Two major supermarket chains in Australia operate through the company structure. Both companies have a policy, within broad limits, of devolving pricing decisions (setting selling

Two major supermarket chains in Australia operate through the company structure. Both companies have a policy, within broad limits, of devolving pricing decisions (setting selling prices) down to managers of individual supermarkets. The managers of the two supermarket chains' stores in the town of Smithville recently met at a conference and began discussing recent developments in supermarket retailing. Both were concerned that a system of farm certification of farms and treatment of workers would increase the purchase cost of fresh produce to them and in turn lower their profit margins. The managers were convinced that eventually, a certification system will be implemented. Accordingly, the managers decide that they will gradually increase their selling prices at their respective supermarkets on fresh produce so that in 12-months (roughly the time the managers expect the certification system will commence), prices are at a level that maintains the current profit margins (non-certification world). In Smithville, the two major supermarkets have around 80% of the retail market for fresh produce. Advise the two managers on the legal implications of their discussions

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