Resale Restrictions Refer to When a Supplier

question 128

Multiple Choice

Resale restrictions refer to when a supplier

• A)requires a channel member to sell only its products.
• B)requires a channel member to finance all loans through the supplier's bank.
• C)requires to whom distributors may resell the supplier's products and in what specific geographical areas or territories they may sell.
• D)attempts to sell used or pre-owned products as new.
• E)attempts to sell used products that have expired or will soon become obsolete without informing the buyer.

---

Definitions:

Underlying Asset

The specific security, commodity, or other financial instrument that a financial derivative, such as an option or futures contract, is based upon.

American Call Option

A financial derivative that gives the buyer the right, but not the obligation, to buy a security at a specified price within a certain time frame.

Exercise Price

The fixed price at which the holder of an options contract can buy (in the case of a call) or sell (in the case of a put) the underlying security or commodity.

ESOs

Employee Stock Options; rights granted to employees to purchase a company's stock at a predetermined price for a specific period.