Sellers’ Agreement on Production Limits

Today’s focus is on the exchange of price/sales/production information.

“OPEC Deal’s Challenge: Member Cheating,” The Wall Street Journal, December 12, 2016 B9. OPEC members agree on production cuts, but then cheat to meet their internal issues. The enforcement mechanisms at the cartel aren’t 100% effective.

So, in addition to complying with law, people shouldn’t agree with competitors about price, sales, or production because the other competitors will cheat.  Don’t expect cheaters to live up to their promises.

 

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Filed under Board, Communications, Compliance, Compliance, Controls, Corporation, Culture, Culture, Duty, Employees, Governance, Internal controls, Legal, Oversight, Requirements, Third parties

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