A Unique Broker That Acts in Many Ways Like a Manufacturer's

question 24

Multiple Choice

A unique broker that acts in many ways like a manufacturer's agent is a food broker, representing buyers and sellers in the grocery industry. Food brokers differ from conventional brokers because they act on behalf of producers on a permanent basis and

• A) receive a commission for their services.
• B) are paid a flat fee for each time the shelves are stocked.
• C) are paid by both the buyer and seller separately depending upon the size of the order.
• D) are paid a commission by the buyer and a bonus by the seller.
• E) are paid a flat fee by both the buyer and seller, but receive a bonus based upon the percentage of increased sales by quarter.

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Definitions:

Discharged

Refers to the completion or termination of an obligation or responsibility, such as a debt being paid off or a contractual duty being fulfilled.

Frustration of Purpose

A legal doctrine that excuses a party from fulfilling a contract when an unforeseen event undermines the contract's original reason.

Unexpected Event

An occurrence or situation that was not foreseen or anticipated and may significantly impact contracts or legal obligations.

Substantially Impaired

A term used to describe a significant reduction in the ability or function of something or someone.