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BLAW 40 - Administrative Law Final Exam
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Answer 1
"Restrictive trade practice" is defined as "any trade practice that forces a consumer to buy,
hire, or avail of any products or, as the case may be, services as a prerequisite for buying,
hiring, or availing of other goods or services."
Trade practices that are restrictive (RTPs) A restrictive trade practice is one that prevents,
distorts, or restricts competition in general. An RTP is a technique that tends to block the
flow of money or resources into the production stream.
An examination of the preceding definition indicates that restrictive trade practice occurs
when the sale or purchase of one or more other products or services is made conditional on
the sale or purchase of one or more other products or services. This is known as a 'tie-up sale'
or a 'tying arrangement' in the industry. As a result of such an arrangement, a consumer is
compelled to acquire things or services that he may not require in addition to the goods or
services that he desires.
For examples :
(a) An unfair trade practice or a restrictive trade prac-tice has been adopted by any trader;
