Part 2: Test your knowledge on how to spot and avoid business collusion
Which of the following is a form of criminal collusion between businesses?
True or False: A casual agreement between two companies about the prices they charge would be considered criminal collusion.
Business is slowing down. You meet with your main competitor and agree to divide up the remaining business you both compete for in your region. You will bid only for the northern area service contracts, and he will bid only for the southern area service contracts. You are both free to set whatever prices you wish, but you will not bid against each other for any contracts. This is an example of:
True or false: You reach an agreement with a competitor not to bid on one construction project and your competitor agrees not to bid on the next one. The contracts are with private companies and don’t involve government procurement. There are much bigger players in the construction industry so you are unlikely to get in trouble.
Which of the following is fair game when submitting a bid for a contract?
- Your friend owns a competing business and tells you they need the contract more than you. You agree to submit a less attractive bid to ensure your friend wins the contract.
- Discussing with other businesses who will bid on which contract so that everyone gets a piece of the pie.
- Competing with other businesses to win a contract without discussing your bid.
- Agreeing with your competitors to take turns and submitting bids on a rotating schedule.
If you are seeking bids by other businesses to supply your company with products or services, it is important to:
- Watch for warning signs associated with bid-rigging, such as bids by different suppliers submitted together, identical bid amounts, or significant differences compared to previous bids by the same suppliers.
- Know the going rate for products and services as well as all your potential suppliers.
- Allow for as many suppliers to bid as possible.
- Require all bidders to provide a Certificate of Independent Bid Determination with their bids.
- All of the above.
Which of the following are potential consequences for those who participate in an agreement to fix the price of a product or service?
Which of the following are potential consequences if competing businesses participate in a bid-rigging agreement?
True or False: Building a compliance program for your business, no matter how big or small, will help you and your company identify and detect things that you and your employees might be doing wrong.
True or False: You are the president of your company and you have found out from an internal review that your company has been involved in collusion. If you come forward, there are means to protect you and your company from prosecution.
You are involved in an illegal agreement with your competitors, and one of those competitors begins to cooperate with the Competition Bureau. You would like to cooperate too. You may qualify for lenient treatment in sentencing if you and your business:
You suspect that the company you work for is colluding with competitors, perhaps to rig bids on government contracts, to charge higher prices or to divide up customers or territories. You should:
- Do nothing, because you are powerless to stop the illegal activity.
- Report it to the Competition Bureau. As a whistleblower, your identity will be kept secret.
- If the collusion involves federal government contracts, consider submitting a tip using the Federal Contracting Fraud Tip Line. You can choose to remain anonymous.
- Both B and C.
True or false: You have been invited to attend a business meeting with employees from other companies in your industry to discuss upcoming projects in your area. It is likely that prices or bids will be discussed. You should decline the invitation and report it to the Competition Bureau.