body: A friend of mine is adamant that a business is legally bound to not exceed a "fair" price for an item or service based on the cost of materials and hours 
  of labour used. He claims that businesses have gotten into deep trouble over it. 
  
  
  I told him that this was nonsense: even if one could argue that such a system were morally correct and/or beneficial to the economy, it would be impractical to implement.
  
  
  I'm interested in the UK mainly but other countries are acceptable.
  
  
  
title: UK - Is there a legal limit to the profit margin of an item or service?