NikeShoescom Produces a Running Shoe That It Sells in the United

question 40

Multiple Choice

NikeShoes.com produces a running shoe that it sells in the United States.The shoe has a check mark on the side,uses inferior materials,and is made using child labor.Nike,Inc.sues NikeShoes for trademark infringement under the Federal Trademark Dilution Act of 1995.What is likely to be the grounds for this suit?

• A)NikeShoes is diluting the value of Nike,Inc.'s product and tarnishing its image.
• B)NikeShoes is not paying Nike,Inc.a percentage of its sales.
• C)Nike,Inc.does not want its products compared to competitors.
• D)NikeShoes should not have been awarded a trademark for the check mark on its shoes.

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Definitions:

Cash Balance

The total amount of cash or cash equivalents a company or individual holds at any given time.

Merchandising Firm

A business that purchases finished goods for the purpose of resale to consumers without altering the condition of the goods.

Merchandise Inventory

Goods or products that a company holds with the intention of selling them to customers as part of its business operations.

Selling Expenses

Costs incurred directly and indirectly from selling a product or service, including sales commissions, advertising, promotional materials, and the salaries of sales staff.