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Business Law: Trade and Consumer Protection Law - Essay Example

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Summary
The paper "Business Law: Trade and Consumer Protection Law" explores the acts of the two major manufacturers who are offering a 30% discount only if the customers undertake not to buy Sally’s boats. This is collusive and prohibited under the Trade and Consumer Protection Law…
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Business Law: Trade and Consumer Protection Law
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Extract of sample "Business Law: Trade and Consumer Protection Law"

The increase in price is justified obviously because none of the hoteliers, except Brad, object to the price increase. The likelihood of any consumer backing off or refusing to pay the new rates is minimal because Port Utopia is a popular tourist and convention destination. This implies that the consumer understands the reason for the six hoteliers raising their accommodation prices. The issue of price increase is quite acceptable and there is no question of breaking any Trade and Consumer Protection Law because this law is applicable only where goods have been purchased or services provided. In the case of Port Utopia, it will be difficult for any client of Port Utopia hotels to argue that the price increase is not authentic. The services provided are average and befitting the environment in Port Utopia. Even if there is a complaint that the price of $300 is too high, the hoteliers can argue that they are not compelling the clients to stay at their hotels and pay the price (Trade and Consumer Protection Law).

Conclusion

The general costs have risen and the rises in prices of these hotels’ accommodation are justified with the rise in prices of the raw materials and other overheads. The seller has the right to sell goods and pass a good title. The prices have increased after due consultation between the existing six hoteliers. Only if there is any breach in the provision of services by any of the six hotels, the client could lodge a complaint under the Trade and Consumer Protection Law (Trade and Consumer Protection Law).

Issue

Sally has done a good job in designing and manufacturing a new boat engine for speed boats which reduces fuel consumption by 40% and noise by 60% and costs approximately 20% less than the comparable models (Trade and Consumer Protection Law).

Decision

There is no mention of the price that the two major engine manufacturers who together hold about 70% of the speed boat engine market are selling their boats for. It must be substantial enough for them to offer their boats at a 30% discount. However, their condition that this discount applies only if the buyers agree not to buy and use Sally’s engine contradicts the provisions of the Trade and Consumer Protection Law. As a manufacturer, Sally has the right to sell her goods. Nobody can stop her. No one can influence the buyer by offering a discount on the condition that they do not buy Sally’s boat. In case Sally’s boats are found inferior in any way, these can be pointed out by her competitors to the customers (Trade and Consumer Protection Law).

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