Fantasy and Stanley's are popular apparel stores. A Fantasy vendor has offered a Stanley's buyer an attractive discount on merchandise that had been returned to Fantasy by a different retailer. The Stanley's buyer realizes the high gross margin opportunity but refuses the offer nevertheless. Why?
A. The buyer wants to preserve Stanley's image as a fashion leader by not selling returned merchandise that could be out of season.
B. Stanley's would be accepting unknown merchandise and could risk the purchase as becoming more problems than it is worth.
C. Transportation costs would increase.
D. By accepting additional merchandise, Stanley's would be paying the additional costs of carrying the merchandise.
E. Accepting the excess merchandise could alter the terms of the purchase as well as delivery dates.
Answer: A
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