A Retail Store Enters into an Agreement to Buy Cheese

question 122

Multiple Choice

A retail store enters into an agreement to buy cheese from a large supplier.The retail store is bound by this agreement and cannot buy cheese from local dairy farms although their prices are lower.This is an example of:

• A)exclusive dealing.
• B)refusal to deal.
• C)predatory pricing.
• D)referral selling.
• E)pyramid selling.

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Definitions:

Dual Sourcing

A source strategy in which firms produce products in-house to ensure quality and availability while also purchasing the same products from suppliers in order to force competition and push innovation within the in-house unit.

Reshoring

The process of bringing manufacturing and production back to a company's original country from overseas to benefit from lower costs, better quality control, or tighter supply chain management.

Firm's Product

The goods or services produced and offered by a business to its customers.

Economic Climate

The overall state and conditions of an economy, affecting business confidence, consumer spending, and financial markets.