A Retailer Might Expect a Stocking Allowance

question 173

Multiple Choice

A retailer might expect a stocking allowance:

• A) for paying the supplier's invoice before the product is delivered.
• B) to pass along to retail salesclerks who aggressively sell the product.
• C) to offset the handling costs for a new product.
• D) if the manufacturer can't fill an order by the promised delivery date.
• E) None of these-stocking allowances only apply to wholesalers.

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Definitions:

Material Modification

A significant alteration to the terms of a contract that affects the rights and duties of the parties involved.

Novation

The substitution of a new contract in place of an old one, often involving a change in parties or the terms of the agreement, with the consent of all parties involved.

LLP Statutes

Laws that govern Limited Liability Partnerships, providing rules on formation, operation, and liabilities of partners in an LLP.

RUPA

The Revised Uniform Partnership Act, which is legislation adopted by various states in the United States to regulate the operations of partnerships.