One of the radical changes that occurred in different areas of human activity is the growth of automation which influenced the employment and level of qualification and training. The growth of automation brought radical changes in such areas as transportation, manufacturing, entertainment, and distribution and sales. For instance, transportation depended mainly on maintenance of the transportation means and the ability of the crew to react adequately to certain problems; airplane safety benefited from the introduction of automated systems. At the same time, manufacturing became less difficult with the growth of automation though more sufficient training was required for people who worked with machines (Kossiakoff & Sweet, 2003, p. 8). The distribution and sales could be performed with the help of automated programs that were operating to ensure that a sufficient amount of products would be delivered to different sale points. As for entertainment, it also benefited the growth of automation because different manipulations were not required; besides, they reduced risk.
Personal computer
Personal computers were introduced as one of the radical technical advances that changed the operation of a great variety of fields. As such, entertainment, communications, manufacturing, and distribution and sales are the fields in which the changes occurred. For instance, in the field of entertainment, personal computers are used as means for viewing the shows and sharing impressions on those shows and other types of entertaining activities. Communication is performed easier with the help of a personal computer, especially after the introduction of another technical advance such as the internet. Moreover, a personal computer can be considered an advance that changed radically the concept of information and its evaluation. Manufacturing can also be performed more effectively concerning the planning and development stages of the manufacturing process because these stages can be fulfilled with the help of a personal computer and applications installed on it. Distribution and sales can be also considered the fields that benefit from the introduction of a personal computer.
Competition of System Characteristics
Cases
Innovation and risk is the first case when system characteristics compete with one another. For instance, it is important to use an innovative approach but with regard to the possible risk in different stages of its operation. Testing and timing are another pair of characteristics that can be conflicting and even competing. As such, it is necessary to assess the timing of the project contrasted to the necessity of testing its effectiveness. Moreover, each stage of the project operation can be in conflict with the timing of the project because of the insufficient time given to complete the project and the importance of all stages of the project. Assessment of alternatives and reliability is the last pair of characteristics. The significance of assessment of alternative ways of solving the problem is great as well as the expected reliability of the system.
Meaning of the best system
The best system does not mean the most efficient system ever or something extraordinary and outstanding. The best, in this respect, means the most appropriate for the plan under consideration. For instance, if some characteristics conflict, it is necessary to introduce the best/most appropriate system that possesses characteristics that would not compete with one another. In other words, the right system for the right project is the best system.
Reference
Kossiakoff, A., & Sweet, W. N. (2003). Systems engineering: Principles and practice. Hoboken, NJ: Wiley-IEEE.
One of the radical changes that occurred in different areas of human activity is the growth of automation which influenced the employment and level of qualification and training. The growth of automation brought radical changes in such areas as transportation, manufacturing, entertainment, and distribution and sales. For instance, transportation depended mainly on maintenance of the transportation means and the ability of the crew to react adequately to certain problems; airplane safety benefited from the introduction of automated systems. At the same time, manufacturing became less difficult with the growth of automation though more sufficient training was required for people who worked with machines (Kossiakoff & Sweet, 2003, p. 8). The distribution and sales could be performed with the help of automated programs that were operating to ensure that a sufficient amount of products would be delivered to different sale points. As for entertainment, it also benefited the growth of automation because different manipulations were not required; besides, they reduced risk.
Personal computer
Personal computers were introduced as one of the radical technical advances that changed the operation of a great variety of fields. As such, entertainment, communications, manufacturing, and distribution and sales are the fields in which the changes occurred. For instance, in the field of entertainment, personal computers are used as means for viewing the shows and sharing impressions on those shows and other types of entertaining activities. Communication is performed easier with the help of a personal computer, especially after the introduction of another technical advance such as the internet. Moreover, a personal computer can be considered an advance that changed radically the concept of information and its evaluation. Manufacturing can also be performed more effectively concerning the planning and development stages of the manufacturing process because these stages can be fulfilled with the help of a personal computer and applications installed on it. Distribution and sales can be also considered the fields that benefit from the introduction of a personal computer.
Competition of System Characteristics
Cases
Innovation and risk is the first case when system characteristics compete with one another. For instance, it is important to use an innovative approach but with regard to the possible risk in different stages of its operation. Testing and timing are another pair of characteristics that can be conflicting and even competing. As such, it is necessary to assess the timing of the project contrasted to the necessity of testing its effectiveness. Moreover, each stage of the project operation can be in conflict with the timing of the project because of the insufficient time given to complete the project and the importance of all stages of the project. Assessment of alternatives and reliability is the last pair of characteristics. The significance of assessment of alternative ways of solving the problem is great as well as the expected reliability of the system.
Meaning of the best system
The best system does not mean the most efficient system ever or something extraordinary and outstanding. The best, in this respect, means the most appropriate for the plan under consideration. For instance, if some characteristics conflict, it is necessary to introduce the best/most appropriate system that possesses characteristics that would not compete with one another. In other words, the right system for the right project is the best system.
Reference
Kossiakoff, A., & Sweet, W. N. (2003). Systems engineering: Principles and practice. Hoboken, NJ: Wiley-IEEE.
With escalating support for democracy and capitalism, value of competition has been absorbed in the society. Competition has emerged as an economic aspect in the society. Competition has positive and negative effects on the society. Notably, competition has reduced cooperation levels in the society. Loewen attempts to provide answers that revolve around the structure of the society.
He discusses different behaviors of people and impacts of social structures on the society. The book provides ideal recommendations on changes that the society should adopt. The essay will highlight benefits of competition in the society. Negative aspects associated with overemphasis on competition will also be presented. Advantages of cooperation and convergence of ideas will be scrutinized. A valid conclusion on whether the society can adopt cooperation model will be made.
Discussion
Diversity is one of positive effects of competition on the society. There is a variety of products and services bringing the increase of consumer satisfaction. Diversity is embedded on innovation or creativity that every firm adopts, so as to enjoy competitive advantage. Prices of products and services are reduced, thus affecting consumers positively. Notably, price is competitive and salience is proportional to price of products. In this regard, consumers are more likely to purchase products that are cheap than buy the expensive ones. As a result, products are relatively cheaper since there are available substitutes as opposed to a situation of monopoly. High quality has also been embraced by firms as a way of satisfying consumers. Firms compete to deliver goods of high quality and low price to consumers so as to enjoy large market share.
Competition has shifted the focus from compliance to ethics. Businesses not only concentrate on satisfying existing legal concepts, but also wining over consumers. In process of maintaining loyalty and salience, businesses assume humanistic approach of doing what is morally right and acceptable by the society. Moreover, there is an inclination to the emotional aspect as the focus is on ensuring that products foster a long term and intrinsic relationship with consumers. As opposed to monopoly, competition ensures that needs of consumers are met in the best way possible. Businesses have to establish trust with consumers and ensure that presence of their products is felt rather than seen.
Competition has shifted the focus from services provided to relationship fostered. Competitive advantage is dependent on the extent, to which a firm adopts emotional approach. For marketing strategies to be effective, emotional element has to be present. Adoption of emotion by firms has increased consumer satisfaction thereby benefiting the society. Despite emergence of many firms, consumers welfare has been addressed in a humane way. All firms focus on fulfilling needs of consumers, as opposed to overemphasis on economic growth in a situation of monopoly. In this regard, competition fosters growth of many humanistic traits like honesty.
In spite of many benefits associated with competition in the society, there are negative aspects associated with the concept especially when it is overemphasized. Stressing how middle class we are today is extremely problematic (Loewen 206). Competition advocacy means that new entrants are encouraged to engage in business activities. Since consumer satisfaction is a competitive process, new entrants focus on meeting demands. It should, however, be noted that some approaches reduce willpower and rationality of consumers, thereby affecting the society negatively. For instance, some firms may take advantage of the fact that target consumers are middle class earners and have a need for cheap products. In such a case, competition would lead to emergence of products that are of low quality and price.
Despite the desire for cheap products, quality and safety should be emphasized, if competition is to be of help to the society. Suboptimal competition that reduces willpower of consumers, negatively affects the society. Further, increased population reduces cooperation and cohesion in the society. Cooperation of firms is associated with collective economic growth of society. Diversification is not always likely to affect the society positively. For instance, combined efforts by collection of firms are likely to benefit the society wholesomely and address the issue of classism. Over inclination on competition, on the other hand, promotes success of individuals and not groups.
Selfishness is one of the negative human aspects that are likely to arise, when competition is overemphasized. Competition means that individual firms will concentrate on their own satisfaction and profitability. Since competition is money driven, firms will only focus on achieving prestige and satisfaction. Lack of cohesion or cooperation will increase incidence of selfishness. There will be reluctance in combination of efforts and resources, since all firms will have similar goals of profitability that they want to enjoy individually.
It should be noted that competitive advantage can only be maintained, if there is rivalry especially among firms of the same industry. Competition that fails to satisfy the needs of consumers and entire society fosters negative human aspects. Dishonesty is also likely to be fostered especially in reducing will power of consumers. Increased competition will reduce business opportunities and new entrants will opt to engage in deceitful or unethical acts, so as to be able to secure market share. Deceitful acts like dishonesty will not draw collective concern, since individual firms concentrate only on their activities.
Despite increased advocacy for competition, it is not likely to affect the society in a positive way. As a matter of fact, a more collaborative model that emphasizes on cooperation has been preferred by most scholars. It should, however, be noted that adoption of a cooperative model is extremely difficult with increased competition. Profitability is one of the reasons why it is difficult for the society to adopt cooperative values. Every company focuses on maximization of profits and combined efforts would mean equal share of returns. In spite of the fact that combined efforts are likely to yield more results, individual firms prefer enjoying undivided benefits.
Supremacy and brand dominance that are sought by most firms would be of no value, if cooperative model was to be adopted by the society. Further, it is difficult to assume a cooperative model since firms are not equal. For instance, those firms that are enjoying a competitive advantage would find it hard to combine their efforts with new entrants. Some companies may lack sufficient capital required in establishment of a cooperative relationship. Creativity would also render cooperation of firms difficult. Strategies of diversification are not uniform and it would be impossible to cover all of them in a unified approach.
Despite the fact that human beings are social, cooperation is not automatic. Human beings live in societies that are shaped by many factors including identity and classicism. Human beings identify with social environment and perceive people from other places as foreigners. Social class determines how people think about society (Loewen 209). Behaviors and thoughts of people are influenced by social structures. In spite of the fact that people from different places socialize, cooperation is a process that calls for more identity and intimacy.
For instance, development of human beings is influenced by different surroundings. Notably, cooperation is difficult since human beings are influenced by environments differently and do not have similar interests. Further, individualization perception that focuses on personal victory discourages incidence of cooperation. Just like firms, individuals feel that they can succeed on their own and prefer individual approach to cooperative one. Moreover, people have different qualities that cannot exist in cooperation but assume individual approach.
Social factors like classism and racism also reduce the degree of cooperation. Human beings are influenced by social structures that they live in. Since the society focuses more on competition than cooperation, human beings will tend to compete rather than cooperate. Competition is associated with individual success as opposed to cooperation that highlights group success. In this regard, competition is more important to human beings than cooperation.
Competition is preferred to cooperation due to existing social structures. It should, however, be noted that adoption of a cooperative model is likely to lead to more benefits in the society than the competitive approach. Social class is most important variable in the society (Loewen 207). It determines the degree of cooperation and competition. Cooperation addresses needs of all people in the society, while competition favors welfare of those who are well endowed. Cooperation further transcends beyond objective of economic growth to social and psychological needs of the society. Cooperation would ensure combined efforts by firms in the society hence increased profitability. For instance, firms could combine their capital and share operational costs, thereby targeting a wider market.
In this regard, a firm that previously had insufficient capital could end up venturing in business hence economic growth. Firms that have already established markets at a national level could expand to the global level through cooperation. As a matter of fact, cooperation has been associated with success by most scholars in recent years. Cooperation is the best way to bridge the gap between the rich and the poor. Cooperation is likely to ensure collective benefits for society at a global level, as opposed to competition that benefits few affluent.
Our society has been influenced by social structures like competition to a large extent. As much as cooperation model might be attractive to the society, the process of its adoption would be difficult. Few high schools offer anthropology courses (Loewen 297). In this regard, social structures should be tamed in a way that promotes cooperation. Such changes can be interpreted as a process of taming the society. Despite the fact that taming the society would be a difficult process, it is possible to restructure the society.
Social structures are made by human beings and restructuring would mean reviewing existing organs. For instance, environment that influences human development can be manipulated in desired way. Incorporation of desired aspects in social environments like curriculum is a viable way to restructure the society. It should, however, be observed that results can only be realized gradually and not instantly. In this regard, young or future generations are likely to demonstrate a perfect version of the desired structure of the society.
Conclusion
Competition is one of existing social structures in the society today. The concept is associated with positive and negative effects in the society. Ideal competition promotes satisfaction of consumers, but overemphasis is likely to harbor adverse effects. Cooperation approach is better than competition model since it ensures collective benefits. Cooperation narrows the gap between poor and affluent significantly. The model is, however, difficult for most firms, since economic gain assumes high priority in the society. Despite the fact that taming is a long term strategy, it is the most ideal approach to restructure the society.
Works Cited
Loewen, James. Everything Your American History Textbook Got Wrong. New York: New York Press, 1995. Print.
Mankind or all the creatures of all ages and civilizations can not live without interacting with each other. I mean each one in this life has a particular role to play. Male or female, everyone focuses on the matters or affairs that one was created for. Since Adam and Eve were created they started the role of life, thus Adam could not make anything and all things alone, and so could not Eve.
But what is the cooperation itself? It is the practice of individuals or larger societal entities working in common with mutually agreed-upon goals and possibly methods, instead of working separately in competition, and in which the success of one is dependent and contingent upon the success of another.
However, co-operation may be coerced (forced) or voluntary (freely chosen), and consequently individuals and groups might co-operate even although they have almost nothing in common qua interests or goals. Examples of that can be found in market trade, military wars, families, workplaces, schools, and prisons, and more generally any institution or organization of which individuals are part (out of their own choice, by law, or forced).
Cooperation is the mastermind action that helps to judge success from all angles. The argument is the following: You can not make clapping by one hand. As a haiku goes:
Heat without cold.
Happiness without disappointment.
One hand clap.
Here in this subject, the person who can do lots of things in the society is regarded (I mean the society which includes several elements working together.) Hand in hand the world will be ours. Here in our country since Dec.2, 1971, the rulers of the seven Emirates decided to unite this country after the conclusion of the declaration of the Federation among the seven emirates. All the work rose together in all fields starting with the works of improving and uniting the infrastructure and cities building projects and even now the rulers of the emirates still have the attention to cooperate in all the spheres. It means that the person can not live life without helping each other. As we have in Islam several verses of the Holy Quran encourage Moslems to do all the effort and to combine forces for the good things and charity acts, but not cooperate for the war fairs.
Projects oblige people to work together, so teamwork has become an essential concept in organizations. Effective teams are a mediator goal towards getting good, sustainable consequences. The industry has seen increasing efforts through thorough training and cross-training to help people to work together more effectively and to accomplish shared goals, whether colleagues are present or absent.
We need to listen to other peoples ideas. When people are allowed to freely express their ideas, these initial ideas will produce other ideas.
We need to ask questions, interact, and discuss the objectives of the team.
We need to treat others with respect and to support their ideas.
We need to help our coworkers, which is the general theme of teamwork.
We need to share with the team to create an environment of teamwork
All members of the team are encouraged to participate in the team.
For a team to work effectively it is essential to team members acquire communication skills and use effective communication channels between one another e.g. using email, viral communication, group meetings, and so on. This will enable team members of the group to work together and achieve the teams purpose and goals.
Meanwhile, we can see lots of people all over the world doing their best to produce Mass destruction weapons and materials, as the nuclear arms race between the two blocks in the recent decades, for example. This could not be regarded as the essence of cooperation, but it is against the cooperation, which should be for the useful and significant things not for the destructions and terrorism.
It is rather difficult to achieve the aims acting alone. Indeed, the person plans, one can put all the prerequisites for any project. Moreover to the dreams of such projects can be realized later on, but one can not start or run that project alone. Because human beings or mankind are created to depend on each other. The smallest model of the society is the family, independently either it includes 4 members or more than 40. No one can live alone, but everybody depends on ones relatives, neighbors, and other people from the surrounding.
Regarding the events, both huge and very significant or small but simply pleasant, it is undoubtedly possible to conclude, that we observe the result of the teamwork, hand in hand, to achieve the aims. In addition to the relations between the states or the countries, it is necessary to say, that there are Superpowers in the world, but one can not live alone. It is the Life Philosophy.
To make the dreams come true the person should follow the correct and the most important steps in the way for success, or in another sense to take by reasons of attainments.
Looking at all responsibilities or works we can see the strides that were pursued to reach the achievements. One of the greatest examples, which is also particularly relevant for the Arab Emirates, is the Oil. Before the discovery, there were several countries all over the world looking for fuel the most important element of the world economy. The specialists realized and discovered that there is oil under the land and every piece of equipment necessary for further discovery and production was provided. The planning for the future works, the man resources, the rigs, and all the team works and staff were made available to start in that work.
In the beginning, the explorers or the teamwork had an opportunity to find the oil effortlessly; they could find it at less than 10 000 feet depth. There could be water or deadly gas. Not having lost the intention, they tried more and more in several other locations. It is usually called the persistence of success. Cooperating and understanding each other are the main factors of successful teamwork, which leads to success.
Some may argue that lots of sportsmen achieve success acting alone, just by training hard every day. But are the sportsmen alone even in the individual kinds of sport such as swimming, running, boxing, F1, etc. Of course, they are not, as before these sportsmen gain success, the coach teaches a sportsman how to move correctly, how to breathe, how to act in a different situation. Swimmer or sprinter competes with his/ her friends to analyze all the possible mistakes and undermine the possibility of the fault. Before the competitions, the sportsman is morally supported by all his/ her friends, relatives, and training staff. If regarding Formula one racing, it may only seem that the pilots are acting alone, in spite they are united in teams. Every pilot is observed by a separate team of the mechanics and the trainers, not taking into account the IT specialists, who are responsible for the correct work of the IT. Humans are the creatures that never make up the convictions, developmental status, and surroundings of the entire globe. To act as if there is no cooperation within states is would be not only unreasonable but also hazardous. Some scholars draw attention to this issue, and while the views may be a bit extreme in the declaration that the world acts as a single incorporated unit, some people are precise in presuming that we join forces with other states, make stronger international organizations, and maintain the humanitarian and educational activities of worldwide civil society. International relations are set, to a large degree, by a range of norms. While some Countries may, at times, oppose the issues of what actions should be regarded as normal, the majority of states realize the mutual profits that can be achieved through collaboration on widely accepted rules. Some illustrations of norms involve the peaceful arrangement of disputes and admiration of national borders.
International cooperation itself is the most essential kind of human cooperation, as it is claimed to maintain order and obedience to world law. International cooperation creates the organizations which are claimed to enhance the world economy, struggle with poverty, help the people who suffered from the disasters.
World history shows that everyone strived to unite the efforts with the others, especially with the neighbors. Thus Germany was united in the Federation after the feudal division and after the division during the cold war resistance. Korea realizes that the united country would be a more powerful actor on the world stage. The states aim to join the international organizations in order not to be alone or isolated from the world affairs
So, a recommendation that I will be able to give after all the conclusions to all my colleagues and friends is not to be alone and keep trying uniting in groups. It is very easy to plan, drew, prepare, and run the mentioned projects alone, but it is difficult to succeed alone in life.
Consumer protection laws are normally designed to make sure that fair competition exists and that truthful information is available in the marketplace. They are formed by the government to guarantee the rights of consumers. Such laws are always established to prevent businesses from engaging in fraud and other specified unfair practices which allows them to gain advantage over competitors in the market (Boya 1987, 279).
They are also designed to protect the weak and who are not able to take care of themselves (Department of Trade and Industry 2006, 3).
The Australian Consumer Law is mostly derived from the provisions that had been previously provided in the Trade Practices Act of 1974 (Australasian Legal Information Institute2011). The Commonwealth Competition and Consumer Act of 2010 which became operational in January 2011 replaced the 20 different consumer laws which had existed in the various territories and states within Australia.
The Australian government aims to ensure fair trading legislation and consumer protection across all the jurisdictions in the country (Kelly 2010). The Australian Competition and Consumer Commission (ACCC) as well as the Australian Securities and Investment Commission (ASIC) are charged with the responsibility of enforcing the Australian Consumer Law (Consumer Affairs Victoria, 2007(a)).
They are considered to be a sovereign power in Australia. When considering whether o not to begin enforcement action against a trader the provisions of the Trade Practices Act of 1974, the enforcement body has to consider instances of unfair trade practices or contract terms as provided for in the Act (Consumer Affairs Victoria 2007(b), 3).
Defining goods and services
The enforcement body which may be the national or the local enforcement body has to consider whether or not the good or service in question is covered under the regulated goods and services in line with the Australian Consumer Law.
According to the Commonwealth Competition and Consumer Act of 2010, a person is accorded the right to file for a complaint if he or she had obtained service(s) or good(s) as a consumer provided that the sum paid (payable) for the service(s) or good(s) is below $40,000 or as laid down in the agreement (Brody 2010).
One is also taken to be a consumer if the good(s) or service(s) obtained are generally for consumption, personal or domestic use. Finally, one is considered to be a consumer if the good(s) comprise a vehicle or trailer that had been obtained primarily for use in the transportation of goods on public roads.
Establishing whether the person is a consumer
A consumer in this case is a person who obtains a good or service for the purpose of ownership or direct consumption, but not for other reasons such as resale, further manufacturing or production. On the other hand, according to the Act, a person is not considered to be a consumer if he or she obtained in order to re-supply.
In addition, any person who acquires good(s) for the purpose of transforming it/them or for use in trade is not considered as a consumer (Averitt & Lande 1997, 713). Transformation may mean production or manufacture process. Transforming could also mean repairing or treating some other good(s) or fixture on land.
Thus, the Australian Competition and Consumer Commission has to establish that the person is a consumer before it enforces any proceeding. It has to determine whether according to the terms of the contract, the good(s) or service acquired was for direct consumption, was below $ 40,000 or if it is a vehicle, then its purpose was for doing transportation along public roads.
This helps to determine whether the person is a consumer or not. However, the commission cannot enforce any proceedings in case the contract in question was an insurance cover or policy (Gans 2005, 40). According to Brody (2011) insurance contracts are exempted from the relief under the Australian Consumer laws.
The Australian Commission Laws part 3, section 2 exempts some gas, electricity and telecommunication services from coverage (Brody 2010). These are covered by the Electricity Act of 2000 Gas Industry Act of 2001.
General Protections
Determining deceptive and misleading conducts
The Australian Competition and Consumer Commission also has to establish whether or not the trader was engaged in misleading or deceptive conduct. Section 18 of the Australian Consumer Laws prohibits a business person or company involved in trade or commerce from engaging in any misleading or deceptive act (Consumer Action Law Centre 2008, 18).
Although misleading and deceptive acts have not been defined in this Act or in other Acts that apply the same provisions, the general meaning is any conduct or act that comprises misrepresentation of any kind.
The commission not only establishes that the business person, corporation or organization had set to deceive or mislead the consumer/buyer, but also investigates whether the person, business or corporation could have engaged in deceptive or misleading acts despite having acted reasonably or honestly (OShea & Rickett 2006, 139).
Since the deceptive and misleading conducts have not been defined by the courts, an objective test has to be conducted by the court or tribunal. This is done to come to a decision on whether the act was deceptive or misleading. This court or tribunal has to decide whether the action or behavior was likely to deceive or mislead the general public or a specific group of people whom the conduct was targeted at.
The commission and the tribunal/court may consider silence as act of deceit or misleading conduct in certain circumstances. For example, the tribunal or court may hold that failure to disclose information to the general public or certain demographic population was misleading if it was deliberately withheld for the benefit of the trader or corporation.
Establishing misrepresentations
The Competition and Consumer Commission may also open up a case against a person or trader who makes unfounded claims about the future. The Commonwealth Competition and Consumer Act of 2010 prohibit any act of misrepresentation regarding future matters (Brody 2010).
According to the Fair Trading Act of 1999, any person who makes claims regarding the future must provide reasonable basis for doing so; otherwise, it is considered as misleading (Victoria Consolidated Legislation 2011). This means that before the commission institutes a legal action against such a person or organization, it has to inquire the validity of the source of the claim.
It can only commence a legal action against the individual, organization or institution if the information or projection is not likely to mislead or deceive the general public or a section of the public.
Before the commission institutes a legal proceeding against a person, organization or corporation accused of deceptive and misleading act based on exclusion clause, the commission, tribunal or court has to investigate and find out whether the allegations made express disclaimer, and exclude liability on the person or organization for making deceptive and misleading statements in the particular advertisement.
If an advertisement which contains the disclaimer is found not to have originated from the trader or company, then the person or organization is not liable for the misleading information found in the advertisement.
However, if claims are made against a person or organization concerning disclaimers which do not prevent the act from being deceptive or misleading, then legal proceedings are instituted for communicating misleading information to prospective customers (Brody 2010).
The Australian Competition and Consumer Commission does not initiate an enforcement action against a trader if it is found out that the trader had engaged in puffery.
Puffery is defined in the Australian Consumer Laws as claims which could be exaggerated or are enthusiastically expressed in advertisement made by a trader, organization or corporation to promote their products and services, even though it is obvious that what is claimed in the advertisement cannot be taken seriously. The courts have often held that puffery cannot be considered as deceptive or misleading act.
A statement is taken as mere puffery if any logical or sound person would not take the message seriously or even consider acting upon it. Brody (2010) presents an example of best ever as among the advertisement sentences which are considered as puffery. This means that the commission has to establish whether the statement used by the trader to make the advertisement constitutes puffery or was misleading and deceptive.
It is assumed that consumers have the common sense to judge statements which have been exaggerated and does not represent the reality. As such, the commission does not enforce any action against a trader who applies such tactics in an advertisement; unless there is other instances in the advertisement which constitute deceptive or misleading conduct (Jenkin& Sylvan 2007).
The Australian Competition and Consumer Commission has to consider whether the provisions of section 29 of the Act have been abused by the person, trader, organization or corporation before instituting a legal proceeding against the accused. Section 29 of the Act prohibits any individual, person or corporation from making false representation concerning various aspects of goods and services (Brody 2010).
It is illegal according to the law to make any false representation as regards price, need, quality, standard, value, and desirability (Katy 2002, 277). It is also unlawful to provide false information regarding approval or affiliation of the product, service or company. False assurance on warranty, guarantee and the right to remedy or availability also constitute misrepresentation as defined in section 29 of the Act.
The person, organization or corporation making the sales or production is prohibited from lying on the sponsorship details of the product, services or company, performance characteristics as well as uses of benefits that potential customers are to gain from the good(s) or service(s) (Consumer Action Law Centre 2008).
Finally, a company or trader is not allowed to provide false information concerning the place of origin, history or the age of the product or that of the company manufacturing the product or providing the service.
Section 30 of this Act further prohibits any misrepresentation concerning the sale or award of an interest in land. According to the provisions in the Australian Competition and Consumer Act, a person, organization or company should not make representation about a sponsorship or affiliation to a land that he/she does not own.
The section further states that a person, organization or company is not allowed to make misleading or false representation as regards the location, price, and the details of interest in land, its characteristics and potential use, as well as, availability of facilities on it.
Thus, the commission has to determine whether the allegations made constitute misrepresentation as defined in the Act or not, before instituting legal proceedings against the person or organization.
Establishing unconscionable conducts
The Australian Competition and Consumer Commission has to determine whether the transaction constituted what is defined in the Act or interpreted by the courts as unconscionable conduct. The Act defines two types of acts which are considered as unconscionable. The first type is the unconscionable conduct as provided for in the unwritten law (Brody 2010).
The Act prohibits a person, organization or company involved in trade or commerce from engaging in unconscionable conduct as described in the unwritten law. Such dealing may occur when unfair transaction or contract is made with a person with special disability.
In that case therefore, the party that takes charge of the transaction or contract is not allowed to take unfair advantage of the disability of the person due to his or her disability or assume the disability situation (Consumer Action Law Centre 2004, 4). The commission institutes a legal proceeding against the trader or company if it is found that transaction or contract is very disadvantageous to the person with the disability.
Unconscionable conduct consists of taking advantage of a person because of his or her age, sex, illiteracy, sickness as well as infirmity of mind (Australian Competition and Consumer Commission 2005, 2). Failure to provide explanation or assistance where necessary while making the transaction or contract also constitutes unconscionable conduct as is defined in the unwritten law.
The commission also has to determine whether the contract or transaction process violates statutory unconscionability. Section 21 of the Act bars anybody or company involved in trade or commerce by supplying of goods or services from providing products or services to person in circumstances which constitute unconscionable conduct (Brody 2010).
The commission or court has to establish the bargaining strength of each party involved and find out whether the consumer was made to fully understand the terms of contract or details of the transaction (Australian Competition and Consumer Commission 2009, 17).
For the commission or court to begin a legal proceeding against the trader or company, the body also has to find out whether any unfair tactics or unwarranted influence were applied on the consumer (Consumer Affairs Victoria 2006, 15). In some instances, the consumer may be required to comply with the conditions stated by the supplier or trader, but it may not disadvantage the consumer.
Thus, the commission or court has to analyze the instance to be able to conclude whether the process is unconscionable under statutory law or not. In some cases, the product or service could have been acquired from a third party provider meaning that the trader or company may not be responsible for the terms of the dealing. It has to investigate matters leading to the formalization of the contract or transaction.
Establishing unfair contract terms
Finally, the Australian Competition and Consumer Commission has to consider whether the terms of the contract or transaction constituted unfair contract terms as defined in the constitution.
A contract term is taken to be unfair if it leads to considerable imbalance in the rights of the parties involved in the contract or causes financial or non-financial disadvantage to the consumer involved in the contract (Consumer Affairs Victoria, 2008, 3; & Hugh 1999, 73).
It may not necessarily protect the legal interests of the company or supplier. Therefore, the commission must establish the transparency of the terms of the contract before instituting a legal proceeding against the trader, supplier or company (Geraint 1997, 257).
Generally, the Australian Competition and Consumer Commission has to consider various factors which include whether the person (complainant) is a consumer or not, whether the good(s) or service(s) in question are covered and the consumer laws or not.
After ascertaining that, it can then establish conducts in the contract or transaction process which violate consumer laws before instituting legal proceeding against the trader or company.
Specific Protections
False or misleading representations about goods or services
When selling or advertising products, businesses should not provide misleading or false information that the good in question is of a given value, grade, standard, model, or style.
For example, in 1975, Sharp Corporation made the false claim that the Standards of Australia had tested and approved every sharp microwave. According to the courts decision, this was a false representation and as a result, a fine of $ 100,000 was imposed on Sharp (Australian Consumer Law 2011).
Bait advertising
A business is said to take part in bait advertising when it rues consumer to buy a certain product by offering an attractive price in full knowledge that the product in question has the likelihood of running out of stock (Australian Consumer Law 2011). In 2005, an investigation of Repco by ACCC revealed that the company had been involved in bait advertising for some products that had run out of stock.
Wrongly accepting payment
Businesses are prohibited from receiving payment from buyers if they have no intention of supplying them with the products within the specified time.
For example, in 1981, World Travel Headquarters received a tour booking to Singapore from a client in the full knowledge that the tour had been changed form a 2-day trip to an overnight trip (Australian Consumer Law 2011). According to the decision made by the court, WTH had disobeyed the ban by accepting payment with the intention of supplying the service.
Inertia selling
Inertia selling involves spontaneously sending goods to an individual after which one coerces the individual to make payment for the goods. Businesses are prohibited from engaging in Inertia selling (Australian Consumer Law 2011). In addition, a person does not have to pay for an unsolicited good.
Pyramid schemes
This is a form of product distribution scheme in which participants earn a commission or profit once they have sold a product to a buyer. In addition, participants are encouraged to recruit other participants and for their efforts, they earn a commission as well. The more participants one introduces, the larger the commission.
Contingent referral selling
It involves giving buyers a commission, rebate or other benefits by a business so that the buyer can give the business constant details for other buyers. The ACL does not prohibit referral selling (Australian Consumer Law 2011). However, businesses are forbidden from participating in continent referral for later events, like referral for the purchase of products.
Consumer transactions
ACL intimately controls unwelcome consumer agreements, implying certain guarantee, and enforces certain minimum requirements with regard to the established agreements.
Consumer guarantees
The ACL endeavors to protect consumers by implying certain guarantees. In the case the consumer is being supplied with goods, the guarantees entails the ownership of the goods shall be passed on to consumers, that the consumer shall posses the goods wholly, and that the quality of such goods is acceptable (Australian Consumer Law 2011).
In addition, the consumer should be guaranteed of goods that are in line with their descriptions.
Unsolicited consumer agreements
This agreement entails the supply of services or goods of approximately $ 100. Such an agreement is unsolicited conducted over the phone outside the business premises and over (Australian Consumer Law 2011). The consumer has also not received any invitation from the seller to negotiate over the supply of the goods or services.
Evidence of transactions
When a consumer orders for goods or service, he/she is at liberty to obtain evidence of the ensuing transaction. This is mandatory for transactions exceeding $ 75. The consumer can also request for proof of transaction for goods and services below this amount.
Safety of consumer goods
ACL Part 3-3 is charged with the responsibility of controlling consumer products.
Product safety standards
The ACL support the establishment of product safety standards. As a result of these standards, businesses are supposed to fulfill certain requirements regarding composition, contents, performance, design, and packaging (Australian Consumer Law 2011). The requirements also take into account testing of consumer goods, as well as the content and form of warning instructions, and markings on consumer goods.
Bans
The ACL issues interim bans products and services that may cause injury to consumers. Interim bans should end after 60 days but can be extended (Australian Consumer Law 2011). The ACL prohibits businesses from selling products and services capable of injuring consumers, and which have received a permanent or interim ban.
Recalls
The ACL can recall goods failing to comply with the established product safety standard and which are capable of causing injury (Australian Consumer Law 2011). Once issues with a notice, businesses are required to recall products at once, and at the same time, inform the public of the defect and potential risk associated with the use of such products and services.
Reference List
Australian Competition and Consumer Commission 2009, Debt collection practices in Australia: Summary of stakeholder consultation. Web.
Australian Competition and Consumer Commission 2005, Dont take advantage of disadvantage: A compliance guide for businesses dealing with disadvantaged or vulnerable consumers. Web.
Australian Consumer Law 2011, Australian Consumer Law Update. Web.
Australasian Legal Information Institute 2011, Competition and Consumer Act 2010: Schedule 2. Web.
Averitt, N. W. &Lande, R. H. 1997, Consumer sovereignty: A unified theory of antitrust and consumer protection law, Antitrust Law Journal, vol. 65, pp. 713.
Boya, U. O. 1987, Consumer usage of unit pricing, Journal of Consumer Studies and Home Economics, vol. 13, No. 1, p. 279.
Brody, G. 2010, Australian consumer law. The Law Handbook. Web.
Consumer Action Law Centre 2008,The consumer protection provisions Part V of the Trade Practices Act of 1974: Keeping Australia. Web.
Consumer Affairs Victoria 2008, Application of unfair contract terms legislation to consumer credit contracts: Consultation paper. Web.
Consumer Affairs Victoria 2007a, Preventing unfair terms in consumer contracts: Guidelines on unfair terms in consumer contracts, Consumer Affairs Victoria, Melbourne.
Consumer Action Law Centre 2007b, Submission to the Productivity Commission Inquiry into Australias Consumer Policy Framework. Web.
Consumer Affairs Victoria 2006,The report of the consumer credit review. Web.
Consumer Affairs Victoria 2004, Discussion paper: What do we mean by vulnerable and disadvantaged consumers? Web.
Department of Trade and Industry 2006, Representative actions in consumer protection legislation: Consultation. Web.
Gans, J. S. 2005, Protecting consumers by protecting competition: Does behavioural economics support this contention?, Competition & Consumer Law Journal, vol.13, No. 40.
Geraint H. 1997, Seeking social justice for poor consumers in credit markets. In Iain Ramsay (ed).Consumer law in the global economy, National and international dimensions, vol. 257.
Hugh, C. 1999, Regulating contracts, Oxford University Press, Oxford.
Jenkin, M. & Sylvan, L. 2007, Consumers and competition: Makingpolicies that work together. Presentation to the National Consumer Congress, Melbourne. Web.
Katy, B. 2002, The uneasy position of unjust enrichment after Roxborough v Rothmans, vol. 277, no. 23.
Kelly, J. 2010, Shoppers and parents among those to benefit from law changes at midnight, The Australian. Web.
OShea, P. & Rickett, C. 2006, In defence of consumer law: The resolution of consumer disputes, Sydney Law Review, vol. 28, n. 1, p. 139.
Victoria Consolidated Legislation 2011, Fair Trading Act 1999. Web.
Over the past few years, firms within the health care industry in the US have experienced an increment in their profitability. One of the factors that contributed to the profitability relates to the high rate at which firms in the industry are incorporating the concept of mergers and joint ventures. The changes in the market have culminated into an increment in the intensity of competition amongst firms in the industry.
In an effort to attain an optimal market position, most health care organizations are increasingly considering the best competitive strategy to adopt. As one of the firms operating within the industry, our organization is considering entering into a joint venture with potential health care firms operating within the society.
However, the firm expects to experience a challenge arising from the recent policies that have been implemented by the presidential administration. The White House has implemented policies to increase regulations with regard to mergers and joint ventures. As a result, mergers and joint ventures will experience a high level of scrutiny.
One of the reasons that explain the increase in the intensity of regulation arises from the fact that the US administration intends to minimize the number of options available to consumers.
Due to these changes, organizations will be required to be more vigilant in the process of undertaking mergers, forming partnerships and joint ventures. This paper is aimed at evaluating the diverse laws and regulations that will guide joint ventures and competition. Understanding these laws will be a great source of insight for the firm in understanding the challenges that it might experience as a result of increased government intervention.
Laws that govern joint ventures and competition
Antitrust laws
The US government has incorporated a number of antitrust laws which are aimed at controlling business operations. Antitrust laws are aimed at preventing businesses from engaging in unfair business practices for example unfair competition or formation of unjust monopolies (Federal Trade Commission, 2009, p. 293).
Antitrust laws prohibit businesses from entering into unlawful associations or horizontal arrangements with their competitors. Under antitrust laws, such arrangements are considered unlawful if their core objective is to develop monopoly power in the market.
Antitrust laws also restrict certain relationships with competitors such as an arrangement aimed at establishing a collective refusal to deal with a certain business enterprise (establishing group boycotts). Such a relationship is considered to be unlawful under antitrust laws.
This arises from the fact that the relationship may reduce freedom of trade. Even if the objective of the relationship is not to restrain competition, antitrust laws consider it to be unlawful (Bloch & Falk, 1994, p.210).
As one of the business structures, joint ventures are lawful. However, there are instances when joint ventures can be considered to be unlawful if they violate antitrust laws. This may occur if the joint venture is established amongst a number of competitors and excludes others (Federal Trade Commission, 2004, p. 28).
If a joint venture takes into consideration a large number of firms compared to those which are excluded, the joint venture may be regarded to have violated antitrust laws.
For example, if all the firms in the health care industry in Houston form a joint venture but exclude a certain category of health care firms for instance non-physicians for anti-competitive objective, the joint venture may be regarded to have engaged in unlawful business action.
Antitrust laws also prevent competitors from engaging in horizontal price fixing. This entails colluding with competitors to set the price of products within a particular range. According to antitrust laws, it is illegal for competitors to involve themselves in market division which entails entering into an agreement to divide the market amongst them (Murray, 2002, p.3).
One of the ways through which organizations may involve themselves in market division entails dividing the market on geographic basis. For example, the health care organization may be restricted from venturing into a region that is assigned to its competitor. The objective of market division is to limit the intensity of competition that a firm experiences. However, such an arrangement is against antitrust laws.
Conclusion
The recent reforms within the health care industry will result into an increment in the intensity of competition within the industry. In an effort to position themselves in the market, most health care organizations will form affiliations such as joint ventures with other providers as a competitive strategy. The reforms were aimed at driving down the cost of offering health care to customers.
In order for health care organizations to successfully form joint ventures, they will be required to adhere with the various antitrust laws which regulate competition and joint ventures. One of the issues that the organization should take into consideration when forming partnerships or joint ventures in an effort to attain a competitive advantage relates to adhering to antitrust laws.
For example, the organization should desist from forming horizontal arrangements aimed at developing a market monopoly and establishing group boycotts. Additionally, the firm should not exclude other firms in the process of establishing the joint venture.
Antitrust laws also prohibit competitors from involving in price fixing. In an effort to ensure that the organization attains an optimal market position, the Board of Directors should be independent in setting the price of its health care services. The organization should also not engage in market division with its competitors.
Reference List
Bloch, R. & Falk, D. (1994). Antitrust, competition and health care reform. Bethesda: HOPE.
Consumer protection laws are normally designed to make sure that fair competition exists and that truthful information is available in the marketplace. They are formed by the government to guarantee the rights of consumers. Such laws are always established to prevent businesses from engaging in fraud and other specified unfair practices which allows them to gain advantage over competitors in the market (Boya 1987, 279).
They are also designed to protect the weak and who are not able to take care of themselves (Department of Trade and Industry 2006, 3).
The Australian Consumer Law is mostly derived from the provisions that had been previously provided in the Trade Practices Act of 1974 (Australasian Legal Information Institute2011). The Commonwealth Competition and Consumer Act of 2010 which became operational in January 2011 replaced the 20 different consumer laws which had existed in the various territories and states within Australia.
The Australian government aims to ensure fair trading legislation and consumer protection across all the jurisdictions in the country (Kelly 2010). The Australian Competition and Consumer Commission (ACCC) as well as the Australian Securities and Investment Commission (ASIC) are charged with the responsibility of enforcing the Australian Consumer Law (Consumer Affairs Victoria, 2007(a)).
They are considered to be a sovereign power in Australia. When considering whether o not to begin enforcement action against a trader the provisions of the Trade Practices Act of 1974, the enforcement body has to consider instances of unfair trade practices or contract terms as provided for in the Act (Consumer Affairs Victoria 2007(b), 3).
Defining goods and services
The enforcement body which may be the national or the local enforcement body has to consider whether or not the good or service in question is covered under the regulated goods and services in line with the Australian Consumer Law.
According to the Commonwealth Competition and Consumer Act of 2010, a person is accorded the right to file for a complaint if he or she had obtained service(s) or good(s) as a consumer provided that the sum paid (payable) for the service(s) or good(s) is below $40,000 or as laid down in the agreement (Brody 2010).
One is also taken to be a consumer if the good(s) or service(s) obtained are generally for consumption, personal or domestic use. Finally, one is considered to be a consumer if the good(s) comprise a vehicle or trailer that had been obtained primarily for use in the transportation of goods on public roads.
Establishing whether the person is a consumer
A consumer in this case is a person who obtains a good or service for the purpose of ownership or direct consumption, but not for other reasons such as resale, further manufacturing or production. On the other hand, according to the Act, a person is not considered to be a consumer if he or she obtained in order to re-supply.
In addition, any person who acquires good(s) for the purpose of transforming it/them or for use in trade is not considered as a consumer (Averitt & Lande 1997, 713). Transformation may mean production or manufacture process. Transforming could also mean repairing or treating some other good(s) or fixture on land.
Thus, the Australian Competition and Consumer Commission has to establish that the person is a consumer before it enforces any proceeding. It has to determine whether according to the terms of the contract, the good(s) or service acquired was for direct consumption, was below $ 40,000 or if it is a vehicle, then its purpose was for doing transportation along public roads.
This helps to determine whether the person is a consumer or not. However, the commission cannot enforce any proceedings in case the contract in question was an insurance cover or policy (Gans 2005, 40). According to Brody (2011) insurance contracts are exempted from the relief under the Australian Consumer laws.
The Australian Commission Laws part 3, section 2 exempts some gas, electricity and telecommunication services from coverage (Brody 2010). These are covered by the Electricity Act of 2000 Gas Industry Act of 2001.
General Protections
Determining deceptive and misleading conducts
The Australian Competition and Consumer Commission also has to establish whether or not the trader was engaged in misleading or deceptive conduct. Section 18 of the Australian Consumer Laws prohibits a business person or company involved in trade or commerce from engaging in any misleading or deceptive act (Consumer Action Law Centre 2008, 18).
Although misleading and deceptive acts have not been defined in this Act or in other Acts that apply the same provisions, the general meaning is any conduct or act that comprises misrepresentation of any kind.
The commission not only establishes that the business person, corporation or organization had set to deceive or mislead the consumer/buyer, but also investigates whether the person, business or corporation could have engaged in deceptive or misleading acts despite having acted reasonably or honestly (OShea & Rickett 2006, 139).
Since the deceptive and misleading conducts have not been defined by the courts, an objective test has to be conducted by the court or tribunal. This is done to come to a decision on whether the act was deceptive or misleading. This court or tribunal has to decide whether the action or behavior was likely to deceive or mislead the general public or a specific group of people whom the conduct was targeted at.
The commission and the tribunal/court may consider silence as act of deceit or misleading conduct in certain circumstances. For example, the tribunal or court may hold that failure to disclose information to the general public or certain demographic population was misleading if it was deliberately withheld for the benefit of the trader or corporation.
Establishing misrepresentations
The Competition and Consumer Commission may also open up a case against a person or trader who makes unfounded claims about the future. The Commonwealth Competition and Consumer Act of 2010 prohibit any act of misrepresentation regarding future matters (Brody 2010).
According to the Fair Trading Act of 1999, any person who makes claims regarding the future must provide reasonable basis for doing so; otherwise, it is considered as misleading (Victoria Consolidated Legislation 2011). This means that before the commission institutes a legal action against such a person or organization, it has to inquire the validity of the source of the claim.
It can only commence a legal action against the individual, organization or institution if the information or projection is not likely to mislead or deceive the general public or a section of the public.
Before the commission institutes a legal proceeding against a person, organization or corporation accused of deceptive and misleading act based on exclusion clause, the commission, tribunal or court has to investigate and find out whether the allegations made express disclaimer, and exclude liability on the person or organization for making deceptive and misleading statements in the particular advertisement.
If an advertisement which contains the disclaimer is found not to have originated from the trader or company, then the person or organization is not liable for the misleading information found in the advertisement.
However, if claims are made against a person or organization concerning disclaimers which do not prevent the act from being deceptive or misleading, then legal proceedings are instituted for communicating misleading information to prospective customers (Brody 2010).
The Australian Competition and Consumer Commission does not initiate an enforcement action against a trader if it is found out that the trader had engaged in puffery.
Puffery is defined in the Australian Consumer Laws as claims which could be exaggerated or are enthusiastically expressed in advertisement made by a trader, organization or corporation to promote their products and services, even though it is obvious that what is claimed in the advertisement cannot be taken seriously. The courts have often held that puffery cannot be considered as deceptive or misleading act.
A statement is taken as mere puffery if any logical or sound person would not take the message seriously or even consider acting upon it. Brody (2010) presents an example of best ever as among the advertisement sentences which are considered as puffery. This means that the commission has to establish whether the statement used by the trader to make the advertisement constitutes puffery or was misleading and deceptive.
It is assumed that consumers have the common sense to judge statements which have been exaggerated and does not represent the reality. As such, the commission does not enforce any action against a trader who applies such tactics in an advertisement; unless there is other instances in the advertisement which constitute deceptive or misleading conduct (Jenkin& Sylvan 2007).
The Australian Competition and Consumer Commission has to consider whether the provisions of section 29 of the Act have been abused by the person, trader, organization or corporation before instituting a legal proceeding against the accused. Section 29 of the Act prohibits any individual, person or corporation from making false representation concerning various aspects of goods and services (Brody 2010).
It is illegal according to the law to make any false representation as regards price, need, quality, standard, value, and desirability (Katy 2002, 277). It is also unlawful to provide false information regarding approval or affiliation of the product, service or company. False assurance on warranty, guarantee and the right to remedy or availability also constitute misrepresentation as defined in section 29 of the Act.
The person, organization or corporation making the sales or production is prohibited from lying on the sponsorship details of the product, services or company, performance characteristics as well as uses of benefits that potential customers are to gain from the good(s) or service(s) (Consumer Action Law Centre 2008).
Finally, a company or trader is not allowed to provide false information concerning the place of origin, history or the age of the product or that of the company manufacturing the product or providing the service.
Section 30 of this Act further prohibits any misrepresentation concerning the sale or award of an interest in land. According to the provisions in the Australian Competition and Consumer Act, a person, organization or company should not make representation about a sponsorship or affiliation to a land that he/she does not own.
The section further states that a person, organization or company is not allowed to make misleading or false representation as regards the location, price, and the details of interest in land, its characteristics and potential use, as well as, availability of facilities on it.
Thus, the commission has to determine whether the allegations made constitute misrepresentation as defined in the Act or not, before instituting legal proceedings against the person or organization.
Establishing unconscionable conducts
The Australian Competition and Consumer Commission has to determine whether the transaction constituted what is defined in the Act or interpreted by the courts as unconscionable conduct. The Act defines two types of acts which are considered as unconscionable. The first type is the unconscionable conduct as provided for in the unwritten law (Brody 2010).
The Act prohibits a person, organization or company involved in trade or commerce from engaging in unconscionable conduct as described in the unwritten law. Such dealing may occur when unfair transaction or contract is made with a person with special disability.
In that case therefore, the party that takes charge of the transaction or contract is not allowed to take unfair advantage of the disability of the person due to his or her disability or assume the disability situation (Consumer Action Law Centre 2004, 4). The commission institutes a legal proceeding against the trader or company if it is found that transaction or contract is very disadvantageous to the person with the disability.
Unconscionable conduct consists of taking advantage of a person because of his or her age, sex, illiteracy, sickness as well as infirmity of mind (Australian Competition and Consumer Commission 2005, 2). Failure to provide explanation or assistance where necessary while making the transaction or contract also constitutes unconscionable conduct as is defined in the unwritten law.
The commission also has to determine whether the contract or transaction process violates statutory unconscionability. Section 21 of the Act bars anybody or company involved in trade or commerce by supplying of goods or services from providing products or services to person in circumstances which constitute unconscionable conduct (Brody 2010).
The commission or court has to establish the bargaining strength of each party involved and find out whether the consumer was made to fully understand the terms of contract or details of the transaction (Australian Competition and Consumer Commission 2009, 17).
For the commission or court to begin a legal proceeding against the trader or company, the body also has to find out whether any unfair tactics or unwarranted influence were applied on the consumer (Consumer Affairs Victoria 2006, 15). In some instances, the consumer may be required to comply with the conditions stated by the supplier or trader, but it may not disadvantage the consumer.
Thus, the commission or court has to analyze the instance to be able to conclude whether the process is unconscionable under statutory law or not. In some cases, the product or service could have been acquired from a third party provider meaning that the trader or company may not be responsible for the terms of the dealing. It has to investigate matters leading to the formalization of the contract or transaction.
Establishing unfair contract terms
Finally, the Australian Competition and Consumer Commission has to consider whether the terms of the contract or transaction constituted unfair contract terms as defined in the constitution.
A contract term is taken to be unfair if it leads to considerable imbalance in the rights of the parties involved in the contract or causes financial or non-financial disadvantage to the consumer involved in the contract (Consumer Affairs Victoria, 2008, 3; & Hugh 1999, 73).
It may not necessarily protect the legal interests of the company or supplier. Therefore, the commission must establish the transparency of the terms of the contract before instituting a legal proceeding against the trader, supplier or company (Geraint 1997, 257).
Generally, the Australian Competition and Consumer Commission has to consider various factors which include whether the person (complainant) is a consumer or not, whether the good(s) or service(s) in question are covered and the consumer laws or not.
After ascertaining that, it can then establish conducts in the contract or transaction process which violate consumer laws before instituting legal proceeding against the trader or company.
Specific Protections
False or misleading representations about goods or services
When selling or advertising products, businesses should not provide misleading or false information that the good in question is of a given value, grade, standard, model, or style.
For example, in 1975, Sharp Corporation made the false claim that the Standards of Australia had tested and approved every sharp microwave. According to the courts decision, this was a false representation and as a result, a fine of $ 100,000 was imposed on Sharp (Australian Consumer Law 2011).
Bait advertising
A business is said to take part in bait advertising when it rues consumer to buy a certain product by offering an attractive price in full knowledge that the product in question has the likelihood of running out of stock (Australian Consumer Law 2011). In 2005, an investigation of Repco by ACCC revealed that the company had been involved in bait advertising for some products that had run out of stock.
Wrongly accepting payment
Businesses are prohibited from receiving payment from buyers if they have no intention of supplying them with the products within the specified time.
For example, in 1981, World Travel Headquarters received a tour booking to Singapore from a client in the full knowledge that the tour had been changed form a 2-day trip to an overnight trip (Australian Consumer Law 2011). According to the decision made by the court, WTH had disobeyed the ban by accepting payment with the intention of supplying the service.
Inertia selling
Inertia selling involves spontaneously sending goods to an individual after which one coerces the individual to make payment for the goods. Businesses are prohibited from engaging in Inertia selling (Australian Consumer Law 2011). In addition, a person does not have to pay for an unsolicited good.
Pyramid schemes
This is a form of product distribution scheme in which participants earn a commission or profit once they have sold a product to a buyer. In addition, participants are encouraged to recruit other participants and for their efforts, they earn a commission as well. The more participants one introduces, the larger the commission.
Contingent referral selling
It involves giving buyers a commission, rebate or other benefits by a business so that the buyer can give the business constant details for other buyers. The ACL does not prohibit referral selling (Australian Consumer Law 2011). However, businesses are forbidden from participating in continent referral for later events, like referral for the purchase of products.
Consumer transactions
ACL intimately controls unwelcome consumer agreements, implying certain guarantee, and enforces certain minimum requirements with regard to the established agreements.
Consumer guarantees
The ACL endeavors to protect consumers by implying certain guarantees. In the case the consumer is being supplied with goods, the guarantees entails the ownership of the goods shall be passed on to consumers, that the consumer shall posses the goods wholly, and that the quality of such goods is acceptable (Australian Consumer Law 2011).
In addition, the consumer should be guaranteed of goods that are in line with their descriptions.
Unsolicited consumer agreements
This agreement entails the supply of services or goods of approximately $ 100. Such an agreement is unsolicited conducted over the phone outside the business premises and over (Australian Consumer Law 2011). The consumer has also not received any invitation from the seller to negotiate over the supply of the goods or services.
Evidence of transactions
When a consumer orders for goods or service, he/she is at liberty to obtain evidence of the ensuing transaction. This is mandatory for transactions exceeding $ 75. The consumer can also request for proof of transaction for goods and services below this amount.
Safety of consumer goods
ACL Part 3-3 is charged with the responsibility of controlling consumer products.
Product safety standards
The ACL support the establishment of product safety standards. As a result of these standards, businesses are supposed to fulfill certain requirements regarding composition, contents, performance, design, and packaging (Australian Consumer Law 2011). The requirements also take into account testing of consumer goods, as well as the content and form of warning instructions, and markings on consumer goods.
Bans
The ACL issues interim bans products and services that may cause injury to consumers. Interim bans should end after 60 days but can be extended (Australian Consumer Law 2011). The ACL prohibits businesses from selling products and services capable of injuring consumers, and which have received a permanent or interim ban.
Recalls
The ACL can recall goods failing to comply with the established product safety standard and which are capable of causing injury (Australian Consumer Law 2011). Once issues with a notice, businesses are required to recall products at once, and at the same time, inform the public of the defect and potential risk associated with the use of such products and services.
Reference List
Australian Competition and Consumer Commission 2009, Debt collection practices in Australia: Summary of stakeholder consultation. Web.
Australian Competition and Consumer Commission 2005, Dont take advantage of disadvantage: A compliance guide for businesses dealing with disadvantaged or vulnerable consumers. Web.
Australian Consumer Law 2011, Australian Consumer Law Update. Web.
Australasian Legal Information Institute 2011, Competition and Consumer Act 2010: Schedule 2. Web.
Averitt, N. W. &Lande, R. H. 1997, Consumer sovereignty: A unified theory of antitrust and consumer protection law, Antitrust Law Journal, vol. 65, pp. 713.
Boya, U. O. 1987, Consumer usage of unit pricing, Journal of Consumer Studies and Home Economics, vol. 13, No. 1, p. 279.
Brody, G. 2010, Australian consumer law. The Law Handbook. Web.
Consumer Action Law Centre 2008,The consumer protection provisions Part V of the Trade Practices Act of 1974: Keeping Australia. Web.
Consumer Affairs Victoria 2008, Application of unfair contract terms legislation to consumer credit contracts: Consultation paper. Web.
Consumer Affairs Victoria 2007a, Preventing unfair terms in consumer contracts: Guidelines on unfair terms in consumer contracts, Consumer Affairs Victoria, Melbourne.
Consumer Action Law Centre 2007b, Submission to the Productivity Commission Inquiry into Australias Consumer Policy Framework. Web.
Consumer Affairs Victoria 2006,The report of the consumer credit review. Web.
Consumer Affairs Victoria 2004, Discussion paper: What do we mean by vulnerable and disadvantaged consumers? Web.
Department of Trade and Industry 2006, Representative actions in consumer protection legislation: Consultation. Web.
Gans, J. S. 2005, Protecting consumers by protecting competition: Does behavioural economics support this contention?, Competition & Consumer Law Journal, vol.13, No. 40.
Geraint H. 1997, Seeking social justice for poor consumers in credit markets. In Iain Ramsay (ed).Consumer law in the global economy, National and international dimensions, vol. 257.
Hugh, C. 1999, Regulating contracts, Oxford University Press, Oxford.
Jenkin, M. & Sylvan, L. 2007, Consumers and competition: Makingpolicies that work together. Presentation to the National Consumer Congress, Melbourne. Web.
Katy, B. 2002, The uneasy position of unjust enrichment after Roxborough v Rothmans, vol. 277, no. 23.
Kelly, J. 2010, Shoppers and parents among those to benefit from law changes at midnight, The Australian. Web.
OShea, P. & Rickett, C. 2006, In defence of consumer law: The resolution of consumer disputes, Sydney Law Review, vol. 28, n. 1, p. 139.
Victoria Consolidated Legislation 2011, Fair Trading Act 1999. Web.
Over the past few years, firms within the health care industry in the US have experienced an increment in their profitability. One of the factors that contributed to the profitability relates to the high rate at which firms in the industry are incorporating the concept of mergers and joint ventures. The changes in the market have culminated into an increment in the intensity of competition amongst firms in the industry.
In an effort to attain an optimal market position, most health care organizations are increasingly considering the best competitive strategy to adopt. As one of the firms operating within the industry, our organization is considering entering into a joint venture with potential health care firms operating within the society.
However, the firm expects to experience a challenge arising from the recent policies that have been implemented by the presidential administration. The White House has implemented policies to increase regulations with regard to mergers and joint ventures. As a result, mergers and joint ventures will experience a high level of scrutiny.
One of the reasons that explain the increase in the intensity of regulation arises from the fact that the US administration intends to minimize the number of options available to consumers.
Due to these changes, organizations will be required to be more vigilant in the process of undertaking mergers, forming partnerships and joint ventures. This paper is aimed at evaluating the diverse laws and regulations that will guide joint ventures and competition. Understanding these laws will be a great source of insight for the firm in understanding the challenges that it might experience as a result of increased government intervention.
Laws that govern joint ventures and competition
Antitrust laws
The US government has incorporated a number of antitrust laws which are aimed at controlling business operations. Antitrust laws are aimed at preventing businesses from engaging in unfair business practices for example unfair competition or formation of unjust monopolies (Federal Trade Commission, 2009, p. 293).
Antitrust laws prohibit businesses from entering into unlawful associations or horizontal arrangements with their competitors. Under antitrust laws, such arrangements are considered unlawful if their core objective is to develop monopoly power in the market.
Antitrust laws also restrict certain relationships with competitors such as an arrangement aimed at establishing a collective refusal to deal with a certain business enterprise (establishing group boycotts). Such a relationship is considered to be unlawful under antitrust laws.
This arises from the fact that the relationship may reduce freedom of trade. Even if the objective of the relationship is not to restrain competition, antitrust laws consider it to be unlawful (Bloch & Falk, 1994, p.210).
As one of the business structures, joint ventures are lawful. However, there are instances when joint ventures can be considered to be unlawful if they violate antitrust laws. This may occur if the joint venture is established amongst a number of competitors and excludes others (Federal Trade Commission, 2004, p. 28).
If a joint venture takes into consideration a large number of firms compared to those which are excluded, the joint venture may be regarded to have violated antitrust laws.
For example, if all the firms in the health care industry in Houston form a joint venture but exclude a certain category of health care firms for instance non-physicians for anti-competitive objective, the joint venture may be regarded to have engaged in unlawful business action.
Antitrust laws also prevent competitors from engaging in horizontal price fixing. This entails colluding with competitors to set the price of products within a particular range. According to antitrust laws, it is illegal for competitors to involve themselves in market division which entails entering into an agreement to divide the market amongst them (Murray, 2002, p.3).
One of the ways through which organizations may involve themselves in market division entails dividing the market on geographic basis. For example, the health care organization may be restricted from venturing into a region that is assigned to its competitor. The objective of market division is to limit the intensity of competition that a firm experiences. However, such an arrangement is against antitrust laws.
Conclusion
The recent reforms within the health care industry will result into an increment in the intensity of competition within the industry. In an effort to position themselves in the market, most health care organizations will form affiliations such as joint ventures with other providers as a competitive strategy. The reforms were aimed at driving down the cost of offering health care to customers.
In order for health care organizations to successfully form joint ventures, they will be required to adhere with the various antitrust laws which regulate competition and joint ventures. One of the issues that the organization should take into consideration when forming partnerships or joint ventures in an effort to attain a competitive advantage relates to adhering to antitrust laws.
For example, the organization should desist from forming horizontal arrangements aimed at developing a market monopoly and establishing group boycotts. Additionally, the firm should not exclude other firms in the process of establishing the joint venture.
Antitrust laws also prohibit competitors from involving in price fixing. In an effort to ensure that the organization attains an optimal market position, the Board of Directors should be independent in setting the price of its health care services. The organization should also not engage in market division with its competitors.
Reference List
Bloch, R. & Falk, D. (1994). Antitrust, competition and health care reform. Bethesda: HOPE.
According to the Swiss Competition Commission, competition law is the main regulator of a businesss competitive behavior (Swiss Competition Commission). Competition law helps in ensuring that market structures and prices are not manipulated (Swiss Competition Commission). Having a strict competition law helps people to anticipate future conditions, and this goes a long way in helping one to make decisions that would be affected by the competition law with much more certainty. In some ways, it favors its citizens over foreigners and varies from one emirate to another. This paper discusses the problems experienced by the loose nature of the UAE competition law by looking into some of its aspects and critiquing it.
Overview
The competition law of the UAE came into effect in 2013. Four main rules in the UAE dictate how foreign companies should conduct business. These laws are the Commercial Agencies Law, the Industry Law, the Federal Companies Law, and the Government Laws (US Department of State). The composition and consequence of these laws must be understood. The competition law in the UAE is overseen by the UAE Cabinet and the Ministry of Economy. A minimum of 51% of the ownership of all the companies established in the UAE must belong to UAE nationals and those companies listed on the security market must have maximum foreign ownership of 49% as stipulated by the Federal Companies Law (Swiss Competition Commission).
Weak and Ambiguous Legal Structure
The UAE legal structure is a hybrid between common law, sharia law, and civil law. It is not clear which law is applicable in what circumstance (Swiss Competition Commission). In addition, numerous economic and non-economic establishments are exempt from law enforcement (Sengupta and Dube). Examples of establishments exempt from competition law are pharmaceutical companies, financial services, telecommunications, government, SMEs, and others (BTI). UAE does not consider precedents in its legal proceedings. This means that it is almost impossible to have a clear picture of how the ruling on a particular legal aspect might turn out (Swiss Competition Commission).
Political Decisions
It is right to say that the UAE government is not democratic. UAE is mainly sheikhdom. The competition law is overseen by the UAE cabinet, Competition Committee, and the Ministry of Economy. This decision-making structure is open to prejudice, and enforcement of the competition law becomes susceptible to unfairness and bias (US Department of State). It is hard for someone to know really what any of the three overseers is responsible for. In addition, the different emirates have different rules and practices. The competition law should only incorporate a single enforcer for clarity purposes. According to the 2014 Investment Climate Statement, unclear and loose policy concerning the oversight of the competition law has led to a lack of regulatory transparency (Swiss Competition Commission).
Political Influence
Most of the large businesses in the UAE are either run by the government or by wealthy families. These wealthy families are influential in political decision-making. It is, therefore, hard to see the merit of decisions concerning the business if the same laws are influenced by the same business owners. Inefficiencies are likely to arise in the marketplace as there exists no clear separation between the policymakers and these wealthy families (Sengupta and Dube). The competition law does not adequately define a separation between the public and the private sector due to the participation of ruling families in many UAE businesses.
Transparency
There is a lack of transparency in doing business in the UAE. In addition, the management must have a UAE nationality (BTI). The insistence of ownership and control by UAE nationals raises the issue of lack of transparency as it is hard for foreigners to establish the motives of the native management. There exists a lack of transparency in dealing with contracts as financial agreements and documents are not revealed. To make the matter worse, any joint venture not controlled by UAE nationals must have a UAE national as a partner, and listing should be under the UAE nationals name (Swiss Competition Commission).
Foreign Investments
Foreigners cannot invest in the UAE without going through an agent who is a UAE national. This agent can grant exclusive rights to a particular supplier. As a result, fair competition is curtailed. Foreign ownership of land in the UAE is allowed. However, there are no agreed-upon rules about land ownership in all the emirates. What exists is a deviation of the collection of rules among emirates (US Department of State). Some emirates allow foreigners to have leasehold or freehold in particular areas. The owners of these lands are not given automatic permissions and rights to live in the UAE. In addition, there exist no written laws or regulations that guide land title documentation and conveyance. As a result, those buying land are often not sure if they will get a freehold title with the same meaning as that in the US or Europe. Unclear or confusing rules about land ownership and investments are a deterrent in attracting investments (BTI).
Conclusion
The benefits of having a stringent competition law regime arose because of the ability of this law regime to avoid problems associated with the ambiguous UAE competition laws discussed above. UAE has some laws with double standards. However, countries such as the UAE are reluctant to have laws that are completely open to free trade. UAE fails to reap the benefits of globalization that include better consumer welfare, economic growth, and efficiency.
Works Cited
BTI 2014. United Arab Emirates Country Report. 2015. Web.
Sengupta, Rijit and Cornelius Dube. Competition Policy Enforcement Experiences From Developing Countries And Implications For Investment. Paris: Oecd Global Forum On International Investment, 2008. Print.
Swiss Competition Commission Israel Antitrust Authority, 2009. Special Project for the 8th Annual Conference Competition Law in Small Economies. 2015. Web.
Swiss Competition Commission. Competition Law In Small Economies. Zurich: International Competition Network, 2009. Print.
U.S Department Of State. 2014 Investment Climate Statement. Web.
All over the globe, different firms or companies experience challenges of competition from enterprises owned by the state. In a country like China, the companies that are owned by the state usually get some benefits in certain areas. These beneficial areas include taxation, and subsidies.
With respect to this, the state owned enterprises are able to compete with the privately owned enterprises in the sense that they are able to get a lot of profit thus placing them in a good position to compete in the international market. Furthermore, enforcement of regulations is also included.
Regulations enable the control of imports and exports in a country. These business regulations have created greater opportunities for China in the international market (Robinson, 1).
China and the world market
Development in China started in 2001. This is after China became a member of the World Trade Organization. During this time, China started to appear in the records of the FDI. The World Trade Organization (WTO) enabled it to do away with the non-tariff barriers.
This has enabled China to expand its market territories internationally. WTO also offered rights to foreign companies to transact businesses. In addition, conditions of foreign investment were changed enabling foreign investors to invest in China (Rugman & Collinson 618).
The ability for China to access the WTO is of very little significance to the US. China entering the WTO had a symbolic and a tangible end regarding any option to the global adoption of capitalism.
Since its membership in the WTO, the Chinese participation has portrayed some kind of socialism. This has been an expectation by many. The growing economy and the access to the markets in America has been part of socialism (Beeson 731).
In the past quarter of a century, the economy of China has been increasing by almost 10% every year. This has been as a result of several factors. These factors include; the strength and the practices of the Chinese businesses. This has culminated to domestic changes in China.
Besides that, it has some implications internationally. In the recent years, the market had been flooded with products bearing the made in china label. Also, the overseas Chinese firms have expanded greatly (Pan 8).
The increased exports have resulted to higher incomes. On the other hand, this ways for other countries enabling them to export their products to the growing Chinese market.
Production in China depends on the increasing importation of inputs. There has been high demand for importation of the consumer goods and food. Also, importation of metal-based products has also increased (Kiely 356).
Global financial crisis in 2008 which is as a result of mortgage crisis in the US, contributed a lot in the present China. The crisis led to decrease in the overseas demands. It also led to Chinese enterprises receiving fewer orders from outside the country.
The increase of the raw materials cost saw production cost escalate. Also, the high cost of labor and inventory had an effect on the cost of production. This resulted to poor working environment for many enterprises (Pan 6).
China has been able to have high accumulation of capital. This is from the foreign money it earns from the export of the products manufactured in the country. This has enabled it to have a rise in its shares of the world GDP. China has been able to manufacture worlds export for more than 25 years. The amount of exports in China has always on the increase every other year.
China accounts for the largest fraction of imports in Europe and North America. The shares on the office equipments are also on increase. China has the capability to produce more sophisticated goods. This development has increased rapidly within the recent years (Glyn 92).
Through advanced technology and industrialization, China has been able to compete very well in the international market. Chinese build their industries and equip them at very high speed. This has geared to the increased manufacturing rate.
The industrial revolution in China is at high speed compared to that which occurred in the west. Majority of the products are manufactured for companies in other countries. This is from the designs and patents offered by these companies.
The foreigners make a lot of profit from this (Hay para.4). In China, long supply chains are common. Multiple contractors are used and its only trust that holds these parties together. In case the process breaks down, it becomes hard to know who is on the wrong (Hay para.5).
China has the largest production of coal and aluminum. With this high production, the aluminum industry has far much advanced. Due to the advanced technology, production is on large scale.
This accords China a competitive advantage leaving a wide gap between it and other competitors in the world. Many countries with low technology import their utensils from China thus adding to the economy of the country (Rugman & Collinson 617).
Auto industry
The motor vehicle industry in China is one of the major players in the globe. This is after Japan and Germany. The exports of autos in china are growing at very high rates. According to the minister of commerce, China targets at lifting its export of the motors sold globally to 10% yearly. Also, countrys manufacturers focus Chinas domestic market (Teslik, para.4).
The rapid growth of the motor industry has given other well established manufacturers a surprise. These manufacturers include Asia and Japan. South Korea is also included. Chinas auto industry development has challenged the regional competitors due to the advanced technology and cheap vehicles.
Also, it has shown a tendency of bring problems to the multinational firms like the US carmakers. U.S has been well known for its advanced technology but it has been unable to compete with China in the motor industry. There is a likely hood of China focusing its export to countries within its closest range of economy. This focus is to enable it have a wider market for its products (Rugman & Collins 34).
Comparing with the auto industry, the aero industry is a bit hard to sail through due to the challenges China goes through. Since 1960, Brazil has been the only known manufacturer. It could make more than one aerospace in one month. Since the aerospace industry in China is growing at a higher rate, goals have been set to increase its competitiveness.
Up to date, China has only managed to manufacture small planes due to the lack of adequate technology. In addition, China manufactures helicopters and transport planes which do very well in the local and the international market. Furthermore, sophisticated warplanes are also manufactured in China. In the year 2007, China announced that they had plans of making planes with large and wide bodies.
This was to bring competition in the manufacturing industry. China is not aiming at competing with Boeing and Airbus in the high capacity plane market. Currently the country lacks the technology required to build wide-bodied planes (Teslik, para.5).
As for now, China targets on making parts of the autos and the aerospace since little cost is incurred in the process of transportation. The country targets on exporting the parts and not the assembled autos. The rate of export of the parts in China is growing on daily basis due to the high demand.
The argument is on when it comes to the transportation of the products. Transportation of parts is considered to be easier since many of them can be stacked in a container consequently, leading to reduced cost of transport (Teslik, para.6).
Aerospace industry
China is also a major player in the manufacturing of aircraft-parts. All of the aircrafts manufactured by Boeing has parts from China. The director of one of the consulting firm aims at airline competition. He also focuses on air port competitiveness. He argues that production of parts shows some sense for Boeing. This is due to the fact that Chinese manufacturers consider the risk of production (Teslik, para.8).
Textile and apparel industry
The textile industry in China is considered as the biggest globally. This is in terms of textile and garment exportation. China has the capacity to export millions of tones yearly of the textile products. Most of the products are marketed in the UK high street shops. There has been an indication that in a few years time, the market share will increase. The highest number of industries in China is privately owned.
Also, foreign investment is common (Chan & Xiaoyang, 11). A Shift to a socialist market economy has transformed the ownership of textile industries. The ownership has been changed from state ownership to privately owned firms. The textile industry in China has more than 4 million employees. The textile exports are mainly designed by foreigners. The garments are mainly made of imported materials.
The industry manufactures clothes targeting the mass markets. The clothing for the mass market is of moderate and low prices. In china, only few industries manufacture clothes of high quality since they target individuals within different classes.
According to statistics, the apparel industry in China was ranked second in terms of export in the year 1995. The market of textiles has increased in China which is as a result of developed economy. The economy improvement is due to the economic reforms which China has undergone. A lot of money has been spent on the consumer goods and this is a result of growth in income (Rugman &Collins 23).
Electricity industry
The electricity industry in China has undergone a lot of transformations since 1985. The first reform concentrated on bringing competition due to liberalization of the industry in the developed countries. A state power corporation was formed in 1997. The functions of the administration were separate from those of the business. To enhance competition in the industry, the corporation was divided into two sectors.
These sectors are the power generation and distribution sectors. This was part of the reforms that were done in 2002. The reforms aimed at liberating the power market. After the reforms pilot program was set, the program was conducted and it aimed at selling the electrical power on wholesale. In the North and East China, the respective regional power companies buy power individually (Robinson 45).
By 2003, the East Chinas GDP contributed 31.8% of the whole country. This had a lot of impact on the countrys economy. Two types of power produced in this region are thermal and hydropower. Thermal power accounts for the highest percentage of the total supply. Monthly transactions were conducted for power export. This was done according to peak and off peak period.
For the future of the power industry in china, the government has emphasized on construction of power generation centers. For the development of the industry, a power generation scheme has been put into use. This scheme has resulted to different production costs among the producers. In 1996, foreign investors were able to sell almost four times that of the local producers.
With this regard, there is no competition when bidding for the wholesale prices. In china, increases in prices are only allowed for the retailers. This is done only when there is an effect due to increase on fuel prices. Rational electricity billing methods should be put into practice to deal with the current problem in the power industry. In addition, standards and rules should be set as a way of dealing with the crisis (Nolan 34).
Conclusion
To promote competition in the industries, china has developed labor laws. These were developed in 2008. These laws have been made based on the European style labor codes. This law protects the workers since the employer can not dismiss an employee without any legal reason. Also, the law ensures that the employees have contracts as per the law (Global labor strategies 37).
Works Cited
Beeson, Mark. Comment: Trading places? China, the United States and the evolution of the international political economy : Review of international political economy, (16) 4.Octomber 2009, pp. 729-741.
Chan, Anita. & Xiaoyang, Zhu. Disciplinary labor regimes in Chinese factories. 2003. Web.
Glyn, Andrew. Finance globalization and welfare. London: Oxford university press. 2005.
Global labor strategies. Why china matters: Labor rights in the era of globalization. 2008.
Kiely, Ray. Povertys fall/Chinas rise: Global convergence or new forms of uneven development? A journal of contemporary Asia. (38) 2008, pp.353-372.
Nolan, Peter. China and the global business revolution : Cambridge journal of economics. (26).2002, pp.119-137.
Pan, Chengxin. What is Chinese about Chinese businesses? Locating the rise of china in global production networks : journal of contemporary China.18 (58), 2009, pp. 7-25.
Robinson, Peter. International business: Winter, (xxxii) 2011.