What precautions are necessary to ensure that exclusive distribution is not liable to challenge as a restraint of trade?
What will be an ideal response?
Exclusive distribution brings benefits such as dealer loyalty, greater sales support, a higher degree of control over the retail market, and better inventory control. However, cases such as United States v. Sealy show the fine line between legal and illegal practices. As long as an exclusive contract does not undermine competition and create a monopoly, it is acceptable. The courts appear to take into account (a) whether the volume of the product in question is a substantial part of the total volume for the product type and (b) whether the exclusive dealership excludes competitive products from a substantial share of the market. Trademark or patent protections may be utilized as a defense against restraint of trade charges, as well as for the economic survival of a company.
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During 2011, the accounts receivable balance of Big Buck Corporation increased. From Big Buck's statement of cash flows, the financial reader would conclude which of the following?
A) This increase indicates that Big Buck sold more than it collected in cash during the period. B) This increase is added to net income in the operating activities section of a statement of cash flows prepared under the indirect method. C) This increase is added to sales recognized on the income statement to determine the cash collections from customers during the period. D) This increase indicates that Big Buck purchased more than it sold in cash during the period.
The view that deregulation or repeal of the NLRA is necessary for free market forces to work efficiently is rooted in _______________________________.
Fill in the blank(s) with the appropriate word(s).
One of the most appealing features of a limited partnership is the limited personal liability it offers to all of the partners
a. True b. False Indicate whether the statement is true or false
Savannah and Tim enter into a sales contract for orchids. With respect to the specific contractual provisions set out in the UCC, Savannah and Tim may
a. agree to different terms only to a reasonable extent. b. agree to different terms unless they "get caught.". c. agree to whatever terms they wish. d. not agree to different terms.