Wreckorp wants to maintain an exclusivity image

Wreckorp wants to maintain an exclusivity image

1. For the scenario below, determine the legality of the company’s actions.

Wreckorp wants to maintain an exclusivity image for its product line of sports equipment. It limits its distribution to 100 stores in each region.

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    Millcorp sells wetsuits for deep sea divers. It recently engineered a new material for its wetsuits to better hold in the wearer’s body heat. After a close encounter with a shark, a customer discovers that the new material protects against shark bites. Soon after, Millcorp’s sales explode and it achieves 90% market share in diver wetsuits. Which of the following best describes this situation?

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    Identify the trade-restraining practice that this example demonstrates.

    Company A and Company B discuss average industry prices.

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    Identify the trade-restraining practice that this example demonstrates.

    Two retailers decide that they will both sell no more than 100 premium TVs per month in order to maintain the quality image of the TVs.

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    Identify the trade-restraining practice that this example demonstrates.

    Company A and Company B both work in the candy industry. They agree that Company A will only sell chocolate to Company C and Company B will only sell fruit candies to Company C.

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    Millitech is a sports equipment manufacturer. It wants to form a merger with an athletic wear company. This would be a __________ merger.

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    Government agencies generally have power to do all but which of the following?

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    For the scenario below, determine the legality of the company’s actions.

    Lilcorp manufactures budget speaker systems for Bigcorp. It arranges an agreement wherein Bigcorp may not charge more than $300 for a speaker system.

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    For the scenario below, determine the legality of the company’s actions.

    Guncorp is selling rifles to a retailer Sportsacorp. In order for Sportsacorp to purchase a shipment of rifles, Guncorp requires that Sportsacorp also purchase a shipment of pistols.

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    Funtech is a toy manufacturer. It wants to form a merger with one of the toy stores that buys its toys. This would be a __________ merger.

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    A government agency which administers rules concerning clean housing projects wants to specify and explain the language it uses to communicate with the public and enforce its statutes. Which of the following is true?

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    Identify the trade-restraining practice that this example demonstrates.

    Tubifor, Inc. purchases all available imported lumber so it can resell it at a quantity and rate that it prefers.

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    Decide the legality of the company’s decision or action in the following situation:

    Vericorp wants to increase its profitability. It rearranges its distribution services so that it can serve customers in certain areas better, while leaving other areas where competitors are stronger unattended. The company makes no agreement with a competitor in doing so. Which of the following is true of this action?

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    Gilcorp wants to increase its profitability. It tries to gain new customers by offering a cash bonus to customers who switch to its service from another company. Which of the following is true of this action?

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    For the scenario below, determine the legality of the company’s actions.

    Ioncorp sells cabinets nationwide to the furniture company Blinkorp. It makes an agreement that Blinkorp will only sell Ioncorp cabinets in its warehouses.

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    Chloe has her own office where she generates investment advice for companies. She is compensated for her advice. Which of the following is false?

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    Kathleen works for an accounting firm, Securate, as an auditor. Kathleen’s firm provides many services including auditing services, investment consulting, and tax assistance. Kathleen is working on an audit for a company that Securate also does consulting for. Which of the following is true?

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    Jewelcorp just began trading securities. The company is a closely-held corporation with several dozen shareholders and $10 million in assets. Which of the following is true concerning the company’s requirement to report to the SEC?

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    Yittercorp regularly trades in securities on a national exchange. The company is a widely-held corporation with 600 shareholders and $15 million in assets. Which of the following is true concerning the company’s requirement to report to the SEC?

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    Fancorp regularly trades in securities on a national exchange. Which of the following is true concerning the company’s requirement to report to the SEC?

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    Bernie just started a business and is trying to raise capital. He has both accredited and non-accredited investors investing in the company. What constraints on investments for new businesses apply here?

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    Horace is trying to start a business. He knows several accredited investors who he knows will help him jumpstart his business. What constraints on investments for new businesses apply here?

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    Which of the following places the events in the correct order?

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    Wendy wants to start a business. She knows many unaccredited investors who she knows will help her jumpstart her business. What constraints on investments for new businesses apply here?

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    Determine the legality of the transaction.

    KlineCorp wants to conduct business with Company B in another country. While visiting Company B, the management team of Company A offers some of the foreign employees some free products from their company.

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    Nation A is new at developing monetary policy and lacks the expertise to develop a high-performing financial system. It would look to _______ for assistance.

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    Nation A has expansive manufacturing capabilities, and, therefore, its economy focuses on selling goods to other countries. Country B buys goods from Country A but can’t pay for the goods until it makes money from its own exports. It would look to _______ for assistance.

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    The citizens of France, Belgium, and Finland are upset by a recent trade law enacted in the European Union which they feel negatively impacts their respective economies. In order to resolve their concerns, they would turn to:

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    Nation A has a political dispute with Nation B. The nations are at odds, but they agree to let a mediator hear the dispute. Which group would hear and decide on the nations’ dispute?

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    Determine the legality of the transaction.

    Tichatech is trying to pierce the global marketplace. When the CEO meets with a foreign prime minister, he offers him a vacation package to show his goodwill toward the country.

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  1. answers before actual test

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