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Use the Following Information to Answer Questions That Refer to the Jewel

question 199

Multiple Choice

Use the following information to answer questions that refer to the Jewel Craft case. Jewel Craft, Inc. is a leading producer in the United States women's costume jewelry and accessories market. Its brands are well known and are sold by department stores and better women's stores. Several stores in a city may carry Jewel Craft's brands because most of Jewel Craft's customers will not consider any other brand.
Jewel Craft's sales force calls on one wholesaler in each state. Gemco, Inc., of Boston, Massachusetts, is the Jewel Craft distributor in that state. Gemco stocks and sells women's accessories (noncompeting lines) for several manufacturers like Jewel Craft. Wholesalers are allowed a 20 percent markup by Jewel Craft--but pay the freight charges to their warehouses. Jewel Craft's policy of using one wholesaler per state comes from its desire to control its distribution. Jewel Craft uses national magazine advertising and also supports a cooperative ad program with retailers.
Jewel Craft's prices allow for a 40 percent retail markup--an attractive percent when one considers that Jewel Craft's products require little in-store selling because of their well-established reputation.
Recently, Jewel Craft was approached by a watch producer with the idea of expanding to watches under the Jewel Craft name. It was argued that although national watch sales have leveled off, Jewel Craft could enjoy growing sales for several years because of the fine reputation the company has achieved. If watches are added, Jewel Craft will use its present policies regarding distribution, pricing, and advertising. Further, it will offer the wholesalers and retailers an attractive "package" deal as an incentive to carry Jewel Craft watches. Intermediaries will be required to carry the watches if they wish to handle the jewelry and accessories.
If Jewel Craft adds the watch line, which federal law might be most directly violated if it carries out its plan to require intermediaries to handle BOTH the watches and the jewelry?

Definitions:

Anesthesia Provided

The administration of drugs or substances to reduce or eliminate pain sensation during medical procedures.

Blood Loss

The loss of blood from the circulatory system, which can occur through injury, surgery, or a medical condition.

Hand-Off Report

A communication tool used by healthcare professionals to transfer essential information and responsibility for care of a patient from one caregiver to another.

Ambulatory Surgery

Surgical procedures that do not require an overnight hospital stay, allowing the patient to return home the same day.