Scenario 3.1 Use the Following to Answer the Questions

question 121

Multiple Choice

Scenario 3.1
Use the following to answer the questions.
Meyers' Sporting Goods,a national chain,has been doing business with Soljur Sports,a manufacturer of skateboards,for several years.Recently,it came to the attention of Meyers' financial director that the average cost per Soljur Sports skateboard had substantially increased over that of the previous year.The financial director asked the marketing department if they knew what the Soljur skateboards cost at competing sporting goods stores,to see if they too were likely hit with a higher cost.
The marketing department found that the Soljur skateboards were priced at $15 less in the competing store than at Meyers.The financial director found that Soljur Sports was selling a similar number of skateboards to one of Meyers' competitors for $10 less per skateboard.The attorney for Meyers' Sporting Goods immediately filed a complaint with the Federal Trade Commission.
-Refer to Scenario 3.1.Suppose that a customer has a complaint against Meyers Sporting Goods Stores.He files a complaint with the Better Business Bureau.What action could the BBB take against Meyers if the complaint was substantiated and Meyers did not change the offending practice?

• A)Issue a cease-and-desist order.
• B)Seek a $10,000 monetary penalty.
• C)Issue a warning to consumers through the local newspaper.
• D)Order Meyers to make restitution.
• E)Seek a $5,000 monetary penalty.

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Definitions:

Futures Contracts

Agreements, enforceable by law, to acquire or dispose of certain commodities or financial assets at a price agreed upon now, to be transacted at a later date.

Hedge Cost Risk

Hedge cost risk refers to the potential variability in the expense of hedging strategies, which are used to mitigate financial risks associated with currency, interest rates, or commodities.

Bushels

A unit of volume that is used primarily in the United States to measure quantities of agricultural commodities and dry goods.

Cereal Company

A business entity that manufactures, markets, and sells cereal products, which are typically grain-based foods consumed for breakfast.