State what the charge would likely be, upon whom it would be laid, and the possible defenses. Render a decision on behalf of the court.

Hewson Jewellers Limited were agents for, among other famous names, one of the finest of the Swiss watchmaker–jewellers. As Hewson was undergoing rough financial times due to an economic downturn, it decided for the first time in its history to have a general 50-percent-off sale. A newspaper advertisement was prepared, and to entice the public it mentioned by name a number of the product lines “to be slashed by half.” The advertisement ran for one day in a national daily newspaper before it was discovered by the Canadian business representative and wholesaler of the Swiss firm. The representative–wholesaler, CanJewel Ltd., telephoned Hewson, and threatened to stop shipment of further stock, and to call Hewson’s debt for stock previously shipped, unless the ad was stopped and the name of the Swiss line dropped from the copy. CanJewel reminded Hewson that “image was everything,” and the Swiss line must never appear to the public to be “on sale.” CanJewel extracted a signed agreement from Hewson that all future advertising copy would be reviewed by CanJewel on behalf of the Swiss manufacturer. Hewson complied, and the second advertisement made no mention of the Swiss line. When government authorities became aware of the matter, a charge was laid under the Competition Act. State what the charge would likely be, upon whom it would be laid, and the possible defences. Render a decision on behalf of the court.

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