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.
(a) Is this arrangement prohibited by Part IV of the CCA?
(b) Would your answer be different if the arrangement was
that Johnny would buy all of his organic fruit from Idoru?
(c) If either arrangement is prohibited, could authorisation
be sought from the ACCC? How?