Letter to a lawyer

Part II: Letter to a lawyer (10 marks)

Scenario

You are an employee of Smart Products Ltd and you have been asked to research whether the

following options are permissible with respect to the operations ofthe Competition and Consumer Act 2010 (Cth).

Your managing

director wants to organise the company’s distribution of its products so that the distributors are each given an exclusive territory. In
order to achieve this he intends to include in the distribution agreement a clause preventing the distributor from resupplying the goods
any area other than that described or stated in the contract.

Smart Products Ltd also sells its products directly to customers. Your

managing director has instructed the sales staffthat in no circumstances is the product to be sold below an advised minimum price,
regardless ofthe prices charged by the other distributors.

You need to decide what the best course of action is for Smart Products Ltd to take, within the law, and then you are to ‘run your ideas past a lawyer’. Write a letter to a lawyer practising in a suitable area of
law along the following lines:

explain what you think Smart Product Ltd is entitled to do, and why it is so entitled to act (ie. You do

need to refer to the specific provisions which permit or deny the action proposed).