Navman: The Resale Price Maintenance Controversy

            
 
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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Case Details:

Price:

Case Code : BECG084 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Themes

Business Ethics/ Business Ethics/ Legal Environment/ International Business
Case Length : 10 Pages
Period : 2004-2008
Pub Date : 2008
Teaching Note : Not Available
Organization : Navman
Industry : Consumer Electronics
Countries : Australia

Abstract:

This case is about the Australian arm of New Zealand-based navigation equipment manufacturer Navman NZ Limited (Navman), and two of its employees who were charged for breaching Section 48 of the Trade Practices Act of 1974.

Navman and its two key executives were found guilty of engaging in Resale Price Maintenance (RPM) by Australian Competition and Consumer Commission (ACCC) and a fine of A$1.25 million was imposed on the company.

The two executives were fined A$80,000 and A$40,000 respectively.

Business Ethics Case Studies | Case Study in Management, Operations, Strategies, Business Ethics, Case Studies

This case emphasizes the need for companies to provide compliance training to managerial executives who are working in foreign lands. The case also explores the relationship between corporate culture and compliance with codes of business ethics.

Issues:

Understand the issue of resale price maintenance and the laws relating to it in different countries.

Understand the need for legal training program for employees working in foreign lands.

Understand the role of corporate culture and compliance with code of business ethics.

Contents:

  Page No.
Introduction 1
Background Note 2
The 'Resale Price Maintenance' Issue 4
The Law and the Practice of RPM 5
Navman Pays the Penalty 6
Outlook 7
Exhibits 8

Keywords:

Business ethics, Business Ethics, Legal environment, International business, Retail Price Maintenance, Price fixing, Pricing, Discounting, Corporate culture, Competition, Price competition, Compliance training, Trade practices act, Culture clash, Portable navigational devices market, Navman, MiTAC, Brunswick

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