UNDERSTANDING BUSINESS >CUSTOM<
UNDERSTANDING BUSINESS >CUSTOM<
11th Edition
ISBN: 9781259694776
Author: Nickels
Publisher: MCG CUSTOM
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Chapter 15.6, Problem 15.6AQ
Summary Introduction

To determine: The ways in which contractual distribution system ensures consistent quality and level of service.

Introduction: When the contractual agreements are made between the manufacturer and different retailers and retailers are bound to follow the terms of the agreement and work accordingly, it is known as contractual distribution system.

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SECTION B Read the following extract and then answer the question belowTwo business entities come to you for assistance and they would like enter into a stock agreement supply. The other is a manufacturer and one is a retailer. It is their fist time to be committing to such a huge business arrangement and they both realise that it is important to do it right because as much as it looks like a great business deal, should it fail to work, it can lead to serious business losses that can even lead to liquidation and litigation. All they ask for is to be advised on the essentials of a valid business contract, and the need to explain conditions for compensating parties for breach of contract. In doing that, it is important to quote relevant authorities. Evaluate how the two enterprises need to be assisted.
Under what conditions are tying agreements, exclusivedealing, and refusal-to-deal judged illegal?
Signed contracts that permit one company to allow another to use its assets are known as which of the​ following? A) Management contracts B) Franchises C) Licensing agreements D) Royalties E) Joint ventures
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