Reference no: EM131109880

You are the General Manager of the Hotel New Hampshire (HNH) located in the Rocks area of Sydney. You receive a phone call from Steve Garvey (SG), the General Manager of your main competitor, the Hotel California also in the Rocks. In the phone call SG says that the fierce competition between the two hotels is bad for both and that you should come to an arrangement which would fix prices for double rooms on Friday nights. He also suggests that future price rises should be agreed to on a 3 monthly basis. SG's suggestions sound good for business but you also suspect that they are illegal. Discuss which law/s would be breached if you act as SG suggests and whether a business can gain permission to act in this way. In your answer you must refer to why this activity is considered illegal and whether the law is an appropriate tool for stopping this sort of behaviour.