Marketing Law for Price Cartel - MyAssignmenthelp.com

Question: Discuss about the Marketing Law for Price Cartel. Answer: Price Cartel to Amcor and Visy: Price Cartle is the agreement between two companies or more than two companies to fix the price range of goods and services for the customers. While running the entire business process in the market organizations have to reduce the supply of products sometime. In this kind of situation, the product fixing renders large number of profitability for the organization. When the two or more than business firms decide in price fixing, the customers power automatically becomes low[1]. Therefore, the customers have to buy products from those organizations. Amcor and Visy the two recognizable packaging companies have decided to finalize the price fixing cartel by $95 million payout. Both the two companies that are Amcor and Visy would have to bear the legal cost; though the cost is yet to determine. It was an approach from Amcor that price cartle is important for maintaining profitability of business. At the same time, this particular action has negative effects on the customers as well. Peopl e may show their reluctance in using the products and services due to fix price. Exemptions: Exemptions are the process of monetary exclusion with the help of which tax can be reduced or relieved. In certain circumstances, business organizations can become relief from taxation policies. Under various sections, this particular action can be used. Amcor and Visy has decided to combine their marketing department in order to create a threat for its competitors. As per the rule of exemption if one particular business set up is completely dependent on other business financially the organization, get few reductions from income tax policies[2]. Amcor has combined their business with Visy. As per the current market status, Visy is financially dependent on Amcor. In this kind of situation, the business organization is free from maintaining sudden taxation policies. Amcor get reduction on their income tax after combining their business process with Visy. Privacy and Electronic Communication Regulation: This particular law has prevented a large number of email marketers from being involved in the spam cases. In the earlier stages, spammers by hacking the email address intended to reveal all the necessary data and information of the company. As a result, the privacy of organizations was at stake[3]. In this kind of situation, the emergence of Privacy and electronic communication regulation has saved large number of companies from being trapped. This particular regulation implies that an individual person within a business organization should not collect necessary data and information without having the permission of business authority[4]. At the same time, the data that would be exchanged internally should be encrypted so that any unauthorized person fails to open the data and information. Amcor and Visy has decided to combine their business due to get financial and resource assistance from each other. In order to implement encryption the company has to invest large amount of money as well as well trained human resources. Therefore, it could have been difficult for any single company for bearing the financial cost for that purpose. Reference List: Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014.Principles of marketing. Pearson Australia. Coase, R.H., 2012.The firm, the market, and the law. University of Chicago press. Jobber, D. and Ellis-Chadwick, F., 2012.Principles and practice of marketing(No. 7th). McGraw-Hill Higher Education. Terpstra, V., Foley, J. and Sarathy, R., 2012.International marketing. Naper Press.