Luxury Good Marketers Found a New Way to Combat Gray

question 100

Multiple Choice

Luxury good marketers found a new way to combat gray market imports into the United States.In March 1995,the U.S.Supreme Court let stand an appeals court ruling prohibiting a discount drugstore chain from selling Givenchy perfume without permission.The distinctive packaging of the perfume is also protected by the U.S.copyright law.The ruling implies that:

• A)Givenchy can only be sold in copyrighted packages.
• B)Costco and Walmart will no longer be able to sell Givenchy.
• C)Costco and Walmart will be able to sell Givenchy with authorization.
• D)gray marketers will be able to market with authorization.
• E)discount drugstores cannot market a product resembling Givenchy's perfumes.

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Definitions:

Hedging

A risk management strategy used to offset potential losses or gains in an investment by taking an opposite position in a related asset.

Price Changes

Variations in the cost of goods and services over time, influenced by factors such as inflation, supply, and demand.

Rate Changes

Adjustments in interest or exchange rates that impact the financial markets and economic conditions.

Zero Sum Game

A situation in which the gain of one party is exactly matched by the loss of another party, indicating that no net wealth is created or destroyed in the transaction.