Which of the following exemplifies a vertical restraint imposed by a franchisor in a contract?
a. A clause prohibiting a franchisee from using the company trademark to support a political candidate.
b. A clause prohibiting a franchisee from announcing special offers during Christmas to attract customers.
c. A clause prohibiting a franchisee from bundling two products of the same company.
d. A clause stating the target sales to be achieved by the company during an accounting year.
A
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The Fisher effect ________
A) comes from combining the Fisher equation and the classical dichotomy B) predicts that in the long run nominal rates will rise with increases in expected inflation C) shows that in high inflation we typically see high nominal interest rates D) all of the above E) none of the above
The demand for the Franconian franc in the foreign exchange market equals 11,000 - 25,000e and the supply of francs in the foreign exchange market equals 9,000 + 25,000 e, where e is the nominal exchange rate expressed in U.S. dollars per franc. If the franc is fixed at 0.25 U.S. dollars per franc, then the franc is ________ and Franconia has a balance-of-payments ________.
A. overvalued; surplus of 10,500 francs B. overvalued; deficit of 10,500 francs C. undervalued; surplus of 10,500 dollars D. undervalued; deficit of 10,500 francs
Under a floating exchange-rate regime with a high degree of capital mobility, a change in the exchange-rate value of domestic currency following contractionary fiscal policy is most likely to
A. cause a surplus in the financial account. B. decrease the country's holdings of official reserve assets. C. induce inflow of foreign capital. D. improve the current account.
Of the collection of supply and demand diagrams in Figure 2.2, which one shows the result of a decrease in the number of sellers in the market for anything?
A. Figure 1 B. Figure 2 C. Figure 3 D. Figure 4