Navman: The Resale Price Maintenance Controversy

Navman: The Resale Price Maintenance Controversy

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

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.     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:

Q1. Understand the issue of resale price maintenance and the laws relating to it in different countries.

Q2. Understand the need for legal training program for employees working in foreign lands.

Q3. Understand the role of corporate culture and compliance with code of business ethics.

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