A Failure Fee Is a Penalty Payment

question 161

Multiple Choice

A failure fee is a penalty payment

• A)a retailer assesses a manufacturer to handle defective new products that customers returned.
• B)a wholesaler makes to a retailer as compensation for sales not made while the product was on the shelf.
• C)a retailer makes to a manufacturer for stockouts (not keeping point-of-purchase displays continuously stocked with the new product).
• D)a manufacturer makes to a wholesaler as compensation for case-lot sales not made to retailers.
• E)a manufacturer makes to compensate a retailer for devoting valuable shelf space to a product that fails to sell.

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