Chapter 6 – Part 2

1. When a customer relies on the retailer to assist the customer or to select the right goods to
serve a particular purpose, the retailer is establishing:
a. an implied warranty of fitness.
b. an implied warranty of merchantability.
c. a price discrimination defense.
d. an expressed warranty of fitness.
e. an expressed warranty of merchantability.
2. D-A Pet Products Company has an extremely popular line of cat food. The company has
recently started insisting that retailers who carry its cat food must also carry its rather
overpriced cat litter. Due to its price, the litter is not a big seller, and it takes away shelf
space from more profitable products. Requiring stores that stock the cat food to also stock
the litter is an example of:
a. a consent agreement.
b. a tying contract.
c. unfair advertising.
d. monopolistic competition.
e. power marketing.
3. The most stringent laws governing franchises are typically enacted at the __________
level.
a. federal
b. state
c. county
d. local
e. international
4. Which of the following is not an ethical dilemma that a retailer faces when buying
merchandise?
a. whether the buyer believes he or she can sell the merchandise
b. the source of the merchandise
c. the issue of product quality
d. whether to demand a slotting fee
e. whether to ask for a bribe