What is an example of a supplementary obligation in prohibited agreements?

Prepare for the ACA ICAEW Business Strategy and Technology Exam. Study with multiple choice questions, flashcards, and detailed explanations. Master complex concepts and excel in your exam!

A supplementary obligation in prohibited agreements refers to additional commitments that can be imposed alongside a primary agreement but may intertwine with anti-competitive practices. Providing exclusive distribution rights serves as a pertinent example of such an obligation.

This is because exclusive distribution rights can restrict the distribution of products to a single distributor in a particular area or market, potentially hindering competition. By limiting the ability of other distributors to sell the same products, it can create barriers to market entry and control prices, which are key concerns of competition law. Such agreements can lead to monopolistic behavior and violate anti-trust regulations.

In comparison, customer loyalty programs, negotiating competitive wages with suppliers, and launching advertising campaigns typically do not fall under the category of supplementary obligations tied directly to prohibited agreements. While they can have implications for competition, they represent more standard business practices that are generally acceptable within competitive frameworks unless they involve anti-competitive motivations or actions.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy