McDonald's Constantly Tries New Ventures, Such as Its Upscale Sandwich

question 31

Multiple Choice

McDonald's constantly tries new ventures, such as its upscale sandwich stores in New York and the United Kingdom, Pret A Manger. It is not afraid to take risks based on

• A) product research.
• B) potential profitability per product.
• C) competitive activity.
• D) customer trends.
• E) market share by sub-brand.

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Definitions:

Express Warranty

A seller's promise or guarantee that a product will meet a certain level of quality and reliability, explicitly stated in a contract or by implication through advertising.

Res Ipsa Loquitur

A legal doctrine that allows for the presumption of negligence in a case where the accident occurring is the type which normally does not happen in the absence of negligence.

Product Liability

The legal liability a manufacturer or seller incurs for producing or selling a faulty product resulting in injury or harm to a consumer.

Express Warranty

A clearly stated promise or guarantee by a seller about the quality or functionality of a product.