X-Data Business Machines Ltd has released an advertising campaign that states the sale price of one of its computer packages - HSC - SSCE Business Studies - Question 2 - 2004 - Paper 1
Question 2
X-Data Business Machines Ltd has released an advertising campaign that states the sale price of one of its computer packages. It has insisted that distributors of th... show full transcript
Worked Solution & Example Answer:X-Data Business Machines Ltd has released an advertising campaign that states the sale price of one of its computer packages - HSC - SSCE Business Studies - Question 2 - 2004 - Paper 1
Step 1
Resale price maintenance
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Answer
Resale price maintenance refers to an agreement between a supplier and distributors, where the supplier sets the minimum price at which distributors can sell their products. By insisting that distributors sell only at the advertised price, X-Data Business Machines is imposing such a minimum sale price, hence breaching this aspect of consumer law.