question archive Johnny buys the organic falafel used in his restaurant from Idoru Ltd

Johnny buys the organic falafel used in his restaurant from Idoru Ltd

Subject:AccountingPrice: Bought3

Johnny buys the organic falafel used in his restaurant from Idoru Ltd. When Johnny complains to Idoru about a recent price increase, Idoru offers Johnny a special deal: Johnny will only have to pay $6 per kilo for organic falafel for the next 12 months, but he must commit to buying all of his organic fruit from Burning Chrome Farms. Idoru does not receive any commission from the Burning Chrome sales, and Johnny is the only restaurant owner to be given such an arrangement.

 

Is this arrangement prohibited by Fiji Competition and Consumer Commission Act (2010)? If yes, support your answer using the relevant section of the ACT.

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