100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
LML4802 October November Portfolio (COMPLETE ANSWERS) R51,43
Add to cart
Quickly navigate to
Preview
  2.  
  3. University Of South Africa
  4.  
  5. The Law of Competition and Trademarks

Exam (elaborations)

LML4802 October November Portfolio (COMPLETE ANSWERS)

 0 purchase

This comprehensive document has detailed analysis, it provides valuable insights and explanations for students seeking to deepen their understanding.

Preview 1 out of 19  pages

Document information

  • May 24, 2024
  • 19
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

  • lml4802 october november portfolio

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

More summaries for

All for this textbook (11)

Written for

All documents for this subject (11)

Seller

avatar-seller
GeniusGears

Reviews received

Content preview

LML4802
Portfolio Semester 2 2023 (Oct/Nov)

,LML4802

October November

Portfolio

Semester 2 2023

DUE: 13 November 2023

QUESTION 1

1.1 Discovery Ltd intends to acquire Netcare Ltd before the implementation of the
National Health Insurance as proposed by the National Health Act 61 of 2003.
Conduct focused research on the companies guided by various provisions for merger
control.
Thereafter, identify and classify the type of the merger, apply the relevant factors
considered for evaluation of the merger and make a recommendation in relation to the
merger as the competition commission. You need not discuss the procedure and
notification provisions of merger regulation. (10)


1.2 Uni Pharma (Uni) is a large pharmaceutical retailer that sources its products from
Mega Pharma Manufacturers (Mega), one of the largest pharmaceutical
manufacturers in South Africa with an 80% market share. When South Africa
experienced its first case of a COVID 19 pandemic infection, Uni, Mega and other
pharmaceutical manufacturers and retailers witnessed a vast increase in demand for
facial masks, sanitizers and disinfectants (these products).

As a result, South Africa experienced a shortage of these products. Mega had to
increase its production to meet the demand from pharmacies. At the same time, Uni
had to procure more stock to meet the demand from consumers. To ensure the
continued supply of these products to consumers, Uni increased the prices of these
products by 300%.

In addition, Uni, with a market share of 40%, approached other pharmaceutical
retailers, and an agreement was reached that they would all charge the same price for
these products. Many consumers were disgruntled by the increase, as they could not
afford these products when they were so needed.

, 1.2.1 You are the principal investigator appointed by the Competition Commission to
investigate Uni’s conduct. Write a report wherein you outline in detail the possible
provisions of the Competition Act 89 of 1998 which have been contravened by Uni,
whether any existing grounds of justification and any sanctions that may be imposed
by the Competition Commission. (15)


1.2.2 Upon investigation, it transpires that Mega has a supply agreement with Uni, in
which it instructed Uni to increase its prices by 300%. The agreement provided that if
Uni failed to increase its prices accordingly, Mega would stop supplying any of its
products to Uni.
As a result, Uni complied with Mega’s request. Write a report wherein you discuss
whether Uni and Mega’s supply agreement contravenes the CONFIDENTIAL Page 7
of 8 LML4802 Oct/Nov 2023 provisions of the Competition Act 89 of 1998 and any
defence that may be available to either of the parties in terms of this Act. (10)




[35]

, ANSWER;
Question 1

1.1

Merger Control Process:
Identify Relevant Legislation:

Research the applicable merger control regulations in the jurisdiction where Discovery
Ltd and Netcare Ltd operate. In South Africa, it may involve the Competition Act and
related guidelines.
Type of Merger:

Determine the type of merger: horizontal, vertical, or conglomerate. This classification
helps in understanding potential competition concerns.
Factors for Evaluation:

Assess various factors considered in merger evaluation, such as market share,
concentration, potential anti-competitive effects, and entry barriers.
Competition Commission's Role:

Understand the role of the competition commission in evaluating and approving
mergers.
Example Approach:
Research on Discovery Ltd and Netcare Ltd:
Company Profiles:

Gather detailed information on Discovery Ltd and Netcare Ltd, including their market
presence, services, and market share.
Market Analysis:

Analyze the market structure in which both companies operate. Identify key
competitors and market dynamics.
Type of Merger:

Classify the merger type based on whether it is horizontal, vertical, or conglomerate.
Factors for Evaluation:

Evaluate factors such as market share, potential for market dominance, impact on
competition, and entry barriers.
Competition Commission Guidelines:

Refer to the relevant guidelines or precedents set by the competition commission for
similar mergers.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller GeniusGears. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for R51,43. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

70089 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 15 years now

Start selling

Recently viewed by you

Exam (elaborations) ·

(1)

CA LIFE INSURANCE EXAM QUESTIONS AND ANSWERS LATEST

Exam (elaborations) ·

(0)

FCE 1 Transformations EXAM 1 (questions and answers).

Exam (elaborations) ·

(0)

NRNP 6540 WEEK 7 Midterm Exam 2023 (Verified Answers)

Exam (elaborations) ·

(0)

CDCR MAJOR 1 EXAM 2023/2024 WITH 100% CORRECT ANSWERS

Exam (elaborations) ·

(0)

Tennessee Timeshare Practice Exam correctly answered 2023

Exam (elaborations) ·

(0)

ANSC 1401 EXAM 3 Questions With 100% Correct Answers

Exam (elaborations) ·

(0)

ISSA CPT Exam Questions & Answers | Already Graded A+

Exam (elaborations) ·

(0)

WGU Course C839 - Intro to Cryptography Exam Graded A+

Exam (elaborations) ·

(1)

Colorado NHA Exam Questions & Answers 100% Verified
R51,43
  • (0)
Add to cart
Added