Suppose Peach Computers Has Entered into a Resale Price Maintenance

question 56

Multiple Choice

Suppose Peach Computers has entered into a resale price maintenance agreement with Computer Super Stores Inc.(CSS Inc.) but not with CompuMart.In this case:

• A)CompuMart will benefit from customers who go to CSS Inc.for information about different computers.
• B)CSS Inc.will sell Peach computers at a lower price than CompuMart.
• C)the wholesale price of Peach computers will be different for CSS Inc.than it is for CompuMart
• D)Peach computers will never increase profits by having a resale price maintenance agreement with all retail outlets that sell its products.

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Definitions:

Holders In Due Course

Individuals or entities that have acquired a negotiable instrument in good faith and for value, thus having certain protections against defenses and claims that could be asserted against the prior holders.

Holder In Due Course

A party who has acquired a negotiable instrument in good faith and for value, and thus has certain rights above the original parties to the instrument.

Materially Altered

Describes a significant change made to a document or agreement that affects its terms or essence.

Reasonable Examination

An appropriate level of scrutiny or inspection applied in a specific context, such as reviewing a document or evaluating a property, to ensure that relevant standards or obligations are met.