HIGHER EDUCATION PROGRAMMES

Academic Year 2021: July - December

Supplementary Summative Assessment 2: Competition Law (HCMLW230-1)

NQF Level, Credit: 6, 10

Weighting: 10%

Assessment Type: Research Essay

Educator: E Makhubele

Examiner: G. Dheka

Due Date 5 January 2022

Total 20 Marks

Instructions

1. Supplementary Summative Assessment 2 (SA 2) must be submitted online before or

on the day of theSummative Assessment 1 (SA 1) sitting.

2. The essay must be a minimum of 600 (six hundred) words, and should not exceed 750
(seven hundred and fifty) words.

3. The essay structure must be as follows:

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 ● Cover Page:

o Name

o Surname

o Student Number

o Name of your Support Centre (i.e. Boston, Braamfontein)

● Introduction: Tells the reader what the essay is about.

● Body / Main Content: Is based on research and relates to the essay question or topic
that has been set.

● Conclusion: Is a summary of what has been covered in the essay, it may also include
suggestions / recommendations.

● Reference list: (not included in the word count): the Harvard Referencing Method must
be adhered to with regards to in-text citations and the reference list.

Please make sure you read and adhere to Boston’s Harvard Method of Referencing: A
Beginner’s Guide when referencing, as well as The Beginners Guide to Plagiarism, both
are available in the HE Library module on ColCampus.

4. The essay must be typed, using the following format settings only:

● Font: Arial

● Font Size: 12

● Line Spacing: 1.5

5. For this assessment the following must be adhered to:

● The compulsory source(s) must be accessed using the HE Library module on ColCampus
unless otherwise stated e.g. through a hyperlink.

A Unicheck-verification report will be issued via ColCampus once the assignment is

submitted. Please ensure that you follow the correct steps when uploading your

2 HCMLW230-1-July-Dec2021-SuppSA2-GD-V3-01122021
assignment, to ensure that the verification report is correctly issued. If the verification
report is issued for the incorrect document, or indicates that a 30% similarity rating has
been exceeded, a mark of zero (0) will be awarded.

Compulsory sources to peruse:

Roberts, S. 2011. Effects-based tests for abuse of dominance in practice: the case of South
Africa. Working Paper 4/2012. Retrieved from https://www.researchgate.net/profile/Simon-
Roberts-2/publication/265874885_EFFECTS-
BASED_TESTS_FOR_ABUSE_OF_DOMINANCE_IN_PRACTICE_THE_CASE_OF_SOUT
H_AFRICA_I_am_grateful_for_comments_from/links/54bcd9910cf24e50e9409b74/EFFECT
S-BASED-TESTS-FOR-ABUSE-OF-DOMINANCE-IN-PRACTICE-THE-CASE-OF-SOUTH-
AFRICA-I-am-grateful-for-comments-from.pdf [Accessed 30 March 2021] [Google]

Ngobese, M. 2018. Excessive pricing to the detriment of consumers. Retrieved from:

http://www.derebus.org.za/excessive-pricing-to-the-detriment-of-consumers/ [Accessed 30
March 2021] [Google]

Additional sources to peruse:

Motta M. 2020. Price regulation in times of crisis can be tricky. Daily Maverick. Retrieved
from https://www.dailymaverick.co.za/opinionista/2020-04-22-price-regulation-in-times-of-
crisis-can-be-tricky/#gsc.tab=0 [Accessed 30 March 2021] [Google]

Nair, R.D & Mondliwa, P. n.d. Excessive Pricing revisited: what is a competitive price? (Or,
how many economists does it take to define economic value?). CCRED, UJ. Retrieved from
https://www.researchgate.net/profile/Reena_Das_Nair/publication/290440699_Excessive_Pri
cing_revisited_what_is_a_competitive_price/links/5698d5f408ae34f3cf2070dd.pdf [Accessed
30 March 2021] [Google]

6. Academic sources and accessing credible e-Resources:

Not all sources / texts can be classified as academic sources. Wikipedia, for example, is
not a credible academic source since authors are not identifiable, and editing an article on
this site is very easy. Also, blog posts often provide valuable information, but are not
academically sound. To judge whether a source is credible, consider the following criteria:

3 HCMLW230-1-July-Dec2021-SuppSA2-GD-V3-01122021
• The author should be identifiable through author information, affiliations, and/or qualifications.

• An academic source has usually been peer-reviewed.

• Academic textbooks or academic journals should be published by a recognised authority/publisher

like a university, an academic publishing house, research organisation etc.

• A list of references should be present, that is, full citations for sources used. Thorough reference
to research is a crucial characteristic of legitimate academic work.

7. You must make use of the Harvard Method of Referencing. Refer to the examples of
referencing below:

Book, single author:

Holt, D.H. 2017. Management principles and practices. Sydney: Prentice-Hall.

Book, 2 or 3 authors:

McCarthey, E.J., William, D.P. & Pascale, G.Q. 2017. Basic marketing. Cape Town:
Juta.

Book, more than 3 authors:

Bond, W.R., Smith, J.T., Brown, K.L. & George, M. 2016. Management of small firms.
Sydney: McGraw-Hill.

Book, no author:

Anon. 2009. A history of Greece. Athens: Cengage.

eBook:

Case, J., Marshall, D. & McKenna, S. 2018. Going to university: The influence of higher
education on the lives of young South Africans [E-book]. Cape Town: African Minds.

4 HCMLW230-1-July-Dec2021-SuppSA2-GD-V3-01122021
 Retrieved from https://www.africanminds.co.za/wp-
content/uploads/2017/06/9781928331698_web.pdf [Accessed 3 June 2019].

Academic journal article with one author:

Waghid, Y. 2019. On the polemic of academic integrity in higher education. South

African Journal of Higher Education, 33(1):1–5.

Academic journal with 2 or more authors:

Waghid, Y. & Davids, N. 2019. On the polemic of academic integrity in higher education.
South African Journal of Higher Education, 33(1):1–5.

Newspaper article from a webpage:

Motshwane, G. 2019. A missed opportunity: Shakes slams Bafana's Afcon plans.

Sowetan Live, 7 June. Retrieved from https://www.sowetanlive.co.za/sport/soccer/2019-
06-07-a-missed-opportunity-shakes-slams-bafanas-afcon-plans/ [Accessed 8 June
2019].

Court case:

Gold Circle (Pty) Ltd v Maharaj (1313/17) [2019] ZASCA 93 (3 June 2019).

Web based images (figures, graphs, maps, artwork):

Boston City Campus & Business College. 2019. Welcome [Image]. Retrieved from
https://www.boston.co.za/ [Accessed 3 June 2019].

Music or recording:

Makeba, M. 1960. The Click Song [Recording]. YouTube. Retrieved from

https://www.youtube.com/watch?v=Qg4Fp-A7IRw [Accessed 8 June 2019].

5 HCMLW230-1-July-Dec2021-SuppSA2-GD-V3-01122021
 Chapter in an edited book (collected work):

Velez, C. 1978. Youth and aging in central Mexico. In B. Myerhoff & A. Simic (eds.).
Life′s career-aging: Cultural variations on growing old. San Francisco, CA: Sage, 107–
162.

8. Boston expects you to approach your work with honesty and integrity. Honesty is the
basis of respectable academic work. Whether you are working on a formative
assessment, a project, a paper (read at a conference), an article (published by a journal),
or a summative assessment essay, you should never engage in plagiarism, unauthorised
collaboration (collusion), cheating, or academic dishonesty.

Plagiarism occurs when a writer duplicates another writer's language or ideas, and then
calls the work their own. Simply put, plagiarism is academic fraud. This includes the ‘copy
and paste’ of work from textbooks, study guides, journal articles, etc. The Plagiarism
Declaration, included in this assessment brief, must be signed and attached to the front
of your essay. Refer to the Plagiarism Information Sheet in your Course Outline for further
information.

9. To obtain maximum results, please consult the rubric included in this brief to ensure that
you adhere to and meet all the given criteria.

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Question 1 (20 marks)
EXCESSIVE PRICING IN SOUTH AFRICA IN THE AGE OF COVID-19

In the wake of the recent COVID-19 outbreak, retailers and pharmaceutical companies in South
Africa have seen a surge in sales of particular products due to ‘panic buying’. While economic theory
indicates that high demand drives price increases, it seems even more so, when the rapid spread
of a virus of this nature sends consumers into panic mode. This, as allegations abound of surging
prices in respect of products that consumers are seeking out.

The Consumer Goods Council of South Africa has recently urged consumers to lodge complaints
(presumably against retailers as well as other companies active in the fast-moving consumer goods
markets) with the Competition Commission (the Commission) in the event that they perceive a surge
in prices of goods. From a competition law perspective, the most likely complaints to arise from
panic buying are excessive pricing complaints, which the Commission is empowered to regulate in
terms of section 8 of the Competition Act (Act).

Source: Mabidikane, L. 2020. Excessive pricing in South Africa in the age of covid-19. Retrieved
from https://www.bowmanslaw.com/insights/competition/excessive-pricing-in-south-africa-in-the-
age-of-covid-19/ [Accessed 30 March 2021]

Required:

Explain the term of ‘‘excessive pricing’ and how it is regulated under the Competition law Act. In
your answer, you must also discuss how the courts have dealt with issues of excessive pricing.

Compulsory sources to peruse:

Roberts, S. 2011. Effects-based tests for abuse of dominance in practice: the case of South Africa.
Working Paper 4/2012. Retrieved from https://www.researchgate.net/profile/Simon-Roberts-
2/publication/265874885_EFFECTS-
BASED_TESTS_FOR_ABUSE_OF_DOMINANCE_IN_PRACTICE_THE_CASE_OF_SOUTH_AF
RICA_I_am_grateful_for_comments_from/links/54bcd9910cf24e50e9409b74/EFFECTS-BASED-
TESTS-FOR-ABUSE-OF-DOMINANCE-IN-PRACTICE-THE-CASE-OF-SOUTH-AFRICA-I-am-
grateful-for-comments-from.pdf [Accessed 30 March 2021] [Google]

7 HCMLW230-1-July-Dec2021-SuppSA2-GD-V3-01122021
 Ngobese, M. 2018. Excessive pricing to the detriment of consumers. Retrieved from:
http://www.derebus.org.za/excessive-pricing-to-the-detriment-of-consumers/ [Accessed 30 March
2021] [Google]

Additional sources to peruse:

Motta M. 2020. Price regulation in times of crisis can be tricky. Daily Maverick. Retrieved from
https://www.dailymaverick.co.za/opinionista/2020-04-22-price-regulation-in-times-of-crisis-can-be-
tricky/#gsc.tab=0 [Accessed 30 March 2021] [Google]

Nair, R.D & Mondliwa, P. n.d. Excessive Pricing revisited: what is a competitive price? (Or, how
many economists does it take to define economic value?). CCRED, UJ. Retrieved from
https://www.researchgate.net/profile/Reena_Das_Nair/publication/290440699_Excessive_Pricing_
revisited_what_is_a_competitive_price/links/5698d5f408ae34f3cf2070dd.pdf [Accessed 30 March
2021] [Google]

The following Learning Outcomes are assessed in this assessment:

Learning Objective
• Discuss the provisions of the Competition Act that are relevant to price discrimination;

• Discuss when it is acceptable for a firm to price-discriminate between competing customers;

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 Criteria
Relevant, original and
thorough research that
presents authoritative sources
and coherent findings
discussing excessive pricing,
Knowledge of how it is regulated under the
legal content, Competition law Act and how
merits of the courts have dealt with
argument and issues of excessive pricing,
with particular reference to
readability
the South African Competition
law (legislation/cases).
9-10
Well-formulated, coherent
Formulation argument is presented
of Argument throughout the research that
and ultimately culminates in a
Conclusion logically consistent and
coherent conclusion.
5 4
Correct Harvard referencing
used throughout. At least
relevant sources consulted
Academic
and cited. Sources are
Integrity recognizable as authoritative
legal academic sources (case
law, journal articles, etc.)
5 4
9 HCMLW230-1-July-Dec2021-SuppSA2-GD-V3-01122021
Total
Relevant and original Relevant research-i.e. Some original research No original
research that relates to pertaining to excessive performed – information research.
the research question by pricing and how it is presented extends beyond No
providing insight regulated under the the content of the textbook. information
discussing excessive Competition law Act. However, the research does additional
pricing, how it is However, the research does not substantively relate to to that in
regulated under the not answer how the courts the research question posed. the
Competition law Act and have dealt with issues of textbook
how the courts have excessive pricing, with provided.
dealt with issues of particular reference to the
excessive pricing, with South Africa Competition
particular reference to law (legislation/cases).
the South African
Competition law
(legislation/cases).
7-8 5-6 2-4 0-1
The paper argues in The paper presents a The paper does reach a No
favour of the conclusion coherently formulated conclusion, but the conclusion
reached with reference conclusion that is related to conclusion is not supported drawn from
to the research and drawn from the by or related to the research the
presented research presented concluded. research
presented
3 2 0-1
Correct Harvard Some correct referencing, Incorrect referencing or None
referencing throughout. and some sources cited, but irrelevant sources cited.
At least relevant sources not sufficient to support the
cited. conclusion and the
argument throughout.
3 2 0-1 /20
10 HCMLW230-1-July-Dec2021-SuppSA2-GD-V3-01122021