Electrical Contractors Course Small Business Legal Question

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24 May 2014
Im trying to finish my electrical contractors course but this question has left me stumped.

Two electrical contractors operated in a small country town and its surrounding district.
These two electrical contractors after two years in business became involved romantically. However, they operated their businesses as separate entities and in competition with each other.
However in most instances (nearly all) their hourly charge out rates was exactly the same for the same type of jobs.

Also, numerous tender prices for the same jobs were within one percent of each other while other electrical contractor tender prices were up to 15 percent above the two town electrical contractor’s tender prices on all occasions.

The two town electricians’ advertised price to customers for the purchase of electric water heaters of the same brand, capacity and element size was exactly the same.
Both electrical contractors operated as private companies for taxation purposes.
With reference to the Trade Practices Act, are these two electrical contractors in contravention of legislation with regard to their business dealings with the customers?

John R

Well-Known Member
14 April 2014
Hi Paul08,
You'd be best to review the ACCC's website on price fixing. Please also note that the Trade Practices Act is now known as the Competition and Consumer Act.
Good luck!
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