Comfort Wear, Inc., a franchisor of shoe stores, wishes to standardize the pricing practices of its franchisees that have engaged in price-cutting to increase their respective shares of the market. The most prudent remedy might be for Comfort to
a. reduce the quantity of the products that it sells to its franchisees.
b. suggest the prices at which its franchisees sell their products.
c. terminate the franchisees who cut prices.
d. undercut the business of those franchisees who cut prices by opening competing stores in the franchisees’ territory.
a. reduce the quantity of the products that it sells to its franchisees.
b. suggest the prices at which its franchisees sell their products.
c. terminate the franchisees who cut prices.
d. undercut the business of those franchisees who cut prices by opening competing stores in the franchisees’ territory.
b. suggest the prices at which its franchisees sell their products.
Begründung:
Franchisor cannot set the price at which the franchisee will resell the goods, can only suggest retail price.
Begründung:
Franchisor cannot set the price at which the franchisee will resell the goods, can only suggest retail price.
Tags: Pricing agreement
Source: p. 59
Source: p. 59
Flashcard set info:
Author: Elisa
Main topic: Law
Topic: International Law
School / Univ.: Hanze Hogeschool
City: Groningen
Published: 14.02.2010
Tags: Exam Year 1
Card tags:
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