An Example of a Supplier That Used Its Bargaining Power

question 154

Multiple Choice

An example of a supplier that used its bargaining power to charge high prices to its customers is

• A) Wal-Mart, which required many of its suppliers to alter their distribution systems to accommodate Wal-Mart's need to control the flow of goods to its stores.
• B) the firms that supply paper napkins to McDonald's restaurants.
• C) the Technicolor Company, the sole producer of cameras and film that movie studios needed to produce color movies in the 1930s and 1940s.
• D) the publishers of the Encyclopedia Britannica.

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Definitions:

Unforeseeable Event

An event that cannot be anticipated or predicted with reasonable accuracy.

Implied Assumption

An unstated understanding or expectation inherent in a situation or agreement.

Known Risk

A hazard or risk that is identified or anticipated before an activity or decision is made.

Plaintiff

The party who initiates a lawsuit by making a complaint against another party, called the defendant, in a court of law.