Compare the Actions of the Following Companies to Determine Which

question 134

Multiple Choice

Compare the actions of the following companies to determine which one represents a direct ownership strategy.

• A)A U.S. clothing firm, Modern Threads, builds and operates an assembly plant in Vietnam.
• B)A U.S. pharmaceutical company partners with a French cosmetic company to create a new entity, selling anti-aging products.
• C)High Tea allows would-be entrepreneurs to use its name and marketing and operational support in exchange for a fee.
• D)A U.S-based manufacturer of pipe fittings sells its products to companies located in China.
• E)Taste-T Ice Cream has set up a legal agreement with Big Burgers to sell its ice cream in all Big Burger restaurants.

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Definitions:

Lawsuit

A legal action initiated by one party against another for the enforcement or protection of a right, or the redress or prevention of a wrong.

Debris

Scattered fragments, typically of something wrecked or destroyed.

Statute Of Frauds

State-level legislation that addresses the enforceability of contracts that fail to meet the requirements set forth in the statute; serves to protect promisors from poorly considered oral contracts by requiring certain contracts to be in writing.

Parol Evidence Rule

A principle in contract law that prevents the parties from presenting external evidence that contradicts or adds to the written terms of a contract.