CAF 04: Business Laws

Chapter 18: Competition Act, and Arbitration Act Outlines: Premium Content
Secret Sheet for Quick Revision This chapter discusses laws relating to Competition and Arbitration. (For Spring 2023)
(For students of Muhammad Asif, FCA)

Competition Act
(to ensure free competition in markets)

Definitions Restrictions on Undertakings

Relevant Market:
Relevant market includes:
q Geographic Market: Area in which undertakings are
involved in supply of goods or services and in which
conditions of competition are similar.
q Product Market: It means all those products and/or
services which are regarded as interchangeable or
substitutable by consumer.
Abuse of dominant position Prohibited Agreements No Deceptive Marketing Practices
Following practices are not allowed: Following agreements are not allowed: Deceptive marketing practices include:
1. Limiting quantity of production or sale. 1. Dividing markets. 1. False or misleading information harming other undertakings.
2. Unreasonable increase in prices. 2. Fixing quantity of production or sale. 2. False or misleading information regarding own good/service.
3. Price discrimination. 3. Collusive tendering. 3. False or misleading comparison of goods in advertisement.
4. Predatory pricing. 4. Fixing the purchase or sale price. 4. Fraudulent use of another’s firm name, trademark, labelling
5. Boycotting other undertaking. 5. Limiting technical development or investment. or packaging.
6. Refusing to deal. 6. Applying dissimilar conditions to similar
7. Tie-ins. transactions.
8. Applying dissimilar conditions to similar 7. Making contract dependent on supplementary
transactions. unrelated obligations.
9. Making contract dependent on
supplementary unrelated obligations.

Arbitration Act
(to resolve disputes out of Court)

Provisions applied in Arbitration Agreement Powers of Arbitrator Appointment by a third party or during a suit
(unless agreed otherwise)
1. To take oath. Parties can:
1. Sole-arbitrator. If even, Arbitrators shall appoint Umpire within 1 month of appointment. 2. To interrogate. q Agree that a third party (named or office holder)
2. Authority shall be irrevocable (cancellable by Court). 3. To make award conditional, or in alternative. will appoint arbitrator.
3. Decision by Arbitrators within 4 months of reference (extendable by Court). 4. To receive opinion of the Court. q Apply for arbitration during a suit.
4. Umpire shall enter if Arbitrators unable to make decision, or time is passed. 5. To correct clerical mistakes in the award.
5. Decision by Umpire within 2 months of entry (extendable by Court).
6. Parties shall produce record and other evidence to Arbitrator/Umpire.
7. Award shall be final and binding on parties. Arbitrators/Umpire may direct about cost of
the case.