Winston's Ice Cream Shop Has Been in the Same Location

question 50

Multiple Choice

Winston's Ice Cream Shop has been in the same location for two decades.Last week,a new ice cream shop opened up just one block down the street.Winston's decides to sell ice cream below cost in order to drive the new shop out of business.What kind of pricing is Winston's using?

• A) Predatory pricing
• B) Competitive pricing
• C) Ceiling pricing
• D) Inelastic pricing
• E) Keystoning

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Definitions:

Mutual Benefit Bailment

A bailment arrangement where both the bailor and the bailee receive a benefit from the transaction involving personal property.

Reasonable Care

The degree of caution and consideration an individual or organization is expected to exercise in a particular situation to avoid harm to others or their property.

Bailment

A legal relationship where physical possession of personal property is transferred from one person to another under the agreement that the property will be returned.

Ordinary Care

The level of care that a reasonably prudent person would exercise in a similar situation to prevent harm.