Buyers Are in Position to Exert Strong Bargaining Power in Dealing

question 26

Multiple Choice

Buyers are in position to exert strong bargaining power in dealing with sellers when

• A) their costs to switch to competing brands or to substitute products are relatively high.
• B) a particular seller's product delivers quality or performance that is very important to the buyer and is not matched by other brands.
• C) they buy the product infrequently or in small quantities and are not particularly well-informed about sellers' products, prices, and costs.
• D) buyer demand is growing rapidly.
• E) the number of buyers is small or when a customer is particularly important to a seller.

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Definitions:

Holder In Due Course

A legal term referring to a person who has received a negotiable instrument in good faith and for value, and thus has certain protections against defenses and prior claims to the instrument.

Endorser

A person who signs a document (usually on its back) transferring their rights to another person.

Negotiable Instruments

Financial documents that guarantee the payment of a specific amount of money, either on-demand or at a set time, with the payer's name written on it.

Federal Parliament

The supreme legislative body in a federal system, usually consisting of two houses, that makes and passes laws.