The cement-manufacturing business is a cutthroat industry. For many years, a small number of large companies, including

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The cement-manufacturing business is a cutthroat industry. For many years, a small number of large companies, including Ash Inc and Izzy Supplies Ltd, have enjoyed a virtual monopoly. They have strongly resisted the emergence of new competitors. Two years ago, Roxel Corp attempted to break into the business. Because of certain technological advances that it had developed, Roxel was able to produce a much better product than was currently available in the market. Although Roxel's product was initially available only in the Atlantic provinces, Ash and Izzy were worried that their profits might drop sharply if Roxel became successful and expanded across the country. They therefore agreed to sell their own cement in the Maritimes at a drastically reduced price. That agreement had two effects: (i) It allowed Ash and Izzy to maintain their traditional share of the market across the country, and (ii) it incidentally drove Roxel out of the cement business. The agreement between Ash and Izzy was unlawful under the Competition Act because it involved regional price discrimination. Can Roxel successfully sue Ash and Izzy for the tort of conspiracy? Explain your answer.

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Managing the Law The Legal Aspects of Doing Business

ISBN: 978-0133847154

5th edition

Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer

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