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Unicorn Enterprises operates the only lithium mine in New Zealand. Lithium is used in batteries. Unicorn Enterprises also manufactures and sells batteries in New Zealand,
Unicorn Enterprises operates the only lithium mine in New Zealand. Lithium is used in batteries. Unicorn Enterprises also manufactures and sells batteries in New Zealand, where it has 80% of the market share. Elephant Inc is an Australian company that decides that it wishes to enter the New Zealand market for batteries. When Elephant Inc opens up its first shop in New Zealand, Unicorn Enterprises has a "Sale", reducing the retail price of all its batteries by 70%, for 5 months. In order for Elephant Inc to manufacture its batteries in New Zealand, it needs to purchase lithium from Unicorn Enterprises. At first, Unicorn Enterprises will not sign a sale and purchase agreement with Elephant Inc. After negotiation, Unicorn Enterprises agrees to sell Elephant Inc lithium at four times its market value, if Elephant Inc also buys coal from Unicorn Enterprises. Required: Analyse Unicorn Enterprises' behaviour in light of the Commerce Act 1986
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