Vysion produces TVs it sells nationwide. Vysion contracted with Karol's Appliances to make it the exclusive distributor of Vysion TVs in the San Diego area. Karol's received a promise that Vysion would not sell its TVs to any other retailer within 20 miles of Karol's. In its San Diego stores, Karol's has a unique pricing policy. A higher price is charged to customers wearing suits than to
customers not wearing suits. Karol's salespeople give non-suit-wearing customers 10% discounts off of the list price, and refuse any discounts to suit-wearing customers. Don's, a rival of Karol's, asked Vysion to allow it to sell its products in San Diego. Vysion refused, pointing to its contract with Karol's. Vysion's distribution policy differs in New York from what it is in California. In New York, Vysion allows every distributor who asks to sell Vysion TVs. However, Vysion requires that New York retailers sign contracts stating that they agree not to sell Vysion products below prices in a monthly "price list" sent by Vysion. In contracts with its distributors nationwide, Vysion insists that sales of its TVs be tied to sales of its VCRs. No consumer is allowed to purchase a Vysion TV without also buying a Vysion VCR. The contract signed by Vysion with Karol's Appliances that guarantees Karol will be the sole distributor of Vysion products in the San Diego area is:
a. a customer restriction
b. a vertical price restraint c. a retail price restraint
d. a territorial restraint
e. a horizontal price restraint
d
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A) The promotion to the working-class man should emphasize his immediate satisfaction in knowing that his family will be cared for, while the upper-class promotion should emphasize the long-term consequences of the choice. B) The promotion to the working-class man should emphasize the long-term benefits of insurance, while the upper-class promotion should emphasize the short-term consequences of the choice. C) The promotion to the working-class man should emphasize pictures while the upper-class promotion should emphasize words. D) Both men would receive the same ad because elaboration codes have been found to be irrelevant to this product category.
Cory Harper, a newly hired accountant, wanted to impress his boss, so he stayed late one night to analyze the office supplies expense account. He determined the cost by month, for the past 12 months, of each of the following: computer paper, copy paper,
fax paper, pencils and pens, note pads, postage, corrections supplies, stationery, and miscellaneous items. Why do companies not include information of this nature in published financial statements?
Liability is imposed on an agent who has exceeded his authority on the basis of a(n):
A. definitive warranty of authority. B. implied warranty of authority. C. actual warranty of authority. D. direct warranty of authority.
As a starting point for testing capital stock and equity transactions, which of the following should the auditor perform?
a. Trace the proceeds of stock sold to the cash receipts journal. b. Review the minutes of the board of directors meetings. c. Examine documentation maintained by the transfer agent. d. Review a copy of the client's articles of incorporation.