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196) The Clayton Act prohibits, restricts, or influences all of the following channel strategies and
practices except which?
A) exclusive dealing
B) refusal to deal
C) resale restrictions
D) vertical integration
E) tying arrangements
197) Figure 15-7 above shows six channel practices that restrain competition, create monopolies,
or otherwise represent unfair methods of competition. Box A represents which federal legislation
meant to curb them?
A) Sherman Act
B) Robinson-Patman Act
C) Federal Trade Commission Act
D) Consumer Goods Pricing Act
E) Clayton Act
198) Figure 15-7 above shows six channel practices that restrain competition, create monopolies,
or otherwise represent unfair methods of competition. Box B represents which federal legislation
meant to curb them?
A) Sherman Act
B) Robinson-Patman Act
C) Federal Trade Commission Act
D) Consumer Goods Pricing Act
E) Clayton Act
199) Dual distribution can violate the Sherman Act and the Clayton Act if the
A) prices charged for items sold through one channel are different from the prices charged for
the same items in another channel.
B) manufacturer's behavior is viewed as lessening competition by eliminating wholesalers or
retailers.
C) manufacturer has a corporate vertical marketing system with one channel and an administered
vertical system with the other.
D) manufacturer uses both a direct and indirect marketing channel.
E) product is not available through more than one marketing channel.
200) Vertical integration can lead to legal prosecution if
A) there is potential to lessen competition or create a monopoly.
B) mergers create too much competition.
C) a corporate vertical system attempts to become a contractual vertical marketing system.
D) an administered vertical system attempts to become a corporate vertical marketing system.
E) one member of the channel attempts to take the position of channel captain away from
another.
201) Some manufacturers have tried to use the brand loyalty of their consumers to force retailers
to carry only their products and none from their competitors. These manufacturers were trying to
force retailers to participate in a practice known as
A) resale restriction.
B) vertical integration.
C) exclusive dealing.
D) refusal to deal.
E) tying arrangement.
202) A tying arrangement exists if a supplier requires
A) a distributor purchasing some products to buy others from the supplier.
B) channel members to sell only its products or restricts distributors from selling directly
competitive products.
C) distributors to resell the supplier's products and specifies geographical areas or territories.
D) a channel member to sell only its products.
E) a channel member to finance all loans through the supplier's bank.
203) Full-line forcing is a special kind of ________. This practice involves a supplier requiring
that a channel member carry its full line of products in order to sell a specific item in the
supplier's line.
A) resale restriction
B) vertical integration
C) exclusive dealing
D) refusal to deal
E) tying arrangement
204) ________ is a special kind of tying arrangement. This practice involves a supplier requiring
that a channel member carry its full line of products in order to sell a specific item in the
supplier's line.
A) Resale restriction
B) Full-line forcing
C) Vertical integration
D) Exclusive dealing
E) Refusal to deal
205) A fast-food franchisee is required by its franchisor to buy unmarked plastic eating utensils
from the franchisor if the franchisee wants to use the cups, napkins, and other paper products
with the franchise logo. The franchisee can buy the identical utensils from a local supplier for
half the price. This requirement would be an example of a(n)
A) dual distribution network.
B) refusal to deal.
C) exclusive dealing.
D) tying arrangement.
E) resale restriction.
206) Questions of legality regarding tying arrangements and exclusive dealing are most likely to
occur in which of these?
A) corporate vertical marketing systems
B) administered vertical marketing systems
C) franchises
D) horizontal marketing systems
E) retail-sponsored cooperatives
207) A refusal to deal with existing channel members may be illegal under the
A) Robinson-Patman Act.
B) Sherman Act.
C) Federal Trade Commission Act.
D) Consumer Goods Pricing Act.
E) Clayton Act.
208) Under the Clayton Act, ________ with existing channel members may be illegal.
A) a refusal to cooperate
B) a refusal to deal
C) sharing proprietary information
D) horizontal integration
E) disintermediation
209) A(n) ________ is a supplier's attempt to stipulate to whom distributors may resell the
supplier's products and in what specific geographical areas or territories they may sell.
A) oligopolistic practice
B) monopolistic practice
C) refusal to deal
D) tying arrangement
E) resale restriction
210) A supplier's attempt to stipulate to whom distributors may resell the supplier's products and
in what specific geographical areas or territories they may sell is referred to as
A) full-line forcing.
B) exclusive dealing.
C) a refusal to deal.
D) a resale restriction.
E) a tying arrangement.
211) Resale restrictions exist if 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) attempts to stipulate to whom distributors may resell the supplier's products and in what
specific geographical areas or territories they may be sold.
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.
212) Resale restrictions have been prosecuted under the Sherman Act. Today, however, the
courts apply the ________ in such cases and consider whether such restrictions have a
"demonstrable economic effect."
A) laissez-faire rule
B) caveat emptor principle
C) rule of reason
D) invisible hand standard
E) FTC Act provision
213) A marketing channel relies on ________ to make products available to consumers and
industrial users.
A) logistics
B) exclusive dealing
C) strategic marketing planning
D) tying arrangements
E) value chain optimization
214) Activities that focus on getting the right amount of the right products to the right place at
the right time at the lowest possible cost are referred to as
A) vertical integration.
B) disintermediation.
C) logistics.
D) direct selling.
E) warehousing.
215) Logistics refers to
A) an inventory management system where the supplier determines the product amount and
assortment a retailer needs and automatically delivers the appropriate items.
B) mathematical formulas and calculations used in determining product volume and demand in
order to generate the greatest revenue at the lowest cost.
C) the sequence of firms that performs activities required to create and deliver a product or
service to ultimate consumers or industrial users.
D) activities that focus on getting the right amount of the right products to the right place at the
right time at the lowest possible cost.
E) a specialized intermediary in the distribution chain responsible for the coordination of all
production schedules.
216) Logistics is most closely related to which element of the marketing mix?
A) product
B) place
C) production
D) promotion
E) price
217) Johnson Controls can receive an order for automobile seats from Ford and deliver the order
four hours later, beginning with raw materials and ending with delivery of the finished seats to
Ford. To accomplish this, Johnson Controls must
A) focus on strong logistics for its customers.
B) provide Ford with a cost-effective dual distribution system.
C) increase the number of steps in the value proposition creation process.
D) establish itself in the role of channel captain.
E) avoid interfering with influence Ford's supply chain.
218) The practice of organizing the cost-effective flow of raw materials, in-process inventory,
finished goods, and related information from point of origin to point of consumption to satisfy
customer requirements is referred to as
A) the inventory management process.
B) logistics management.
C) production management.
D) manufacturer distribution logistics.
E) supply-chain management.
219) Logistics management refers to
A) the practice of organizing the cost-effective flow of raw materials, in-process inventory,
finished goods, and related information from point of origin to point of consumption to satisfy
customer requirements.
B) the integration and organization of information and logistics activities across firms in a supply
chain for the purpose of creating and delivering products and services that provide value to
ultimate consumers.
C) the integration and organization of information and logistical activities that actively bring
consumers together with sellers through the express use of agents and brokers.
D) systems that are designed to reduce a retailer's lead time for receiving merchandise, which
then lowers a retailer's inventory investment, improves customer service levels, and reduces
logistics expense.
E) proprietary computer and telecommunication technologies used to exchange electronic
invoices, payments, and information among suppliers, manufacturers, wholesalers, and retailers.
220) As it relates to the definition of logistics management, flow refers to decisions needed to
move
A) raw materials to the producer.
B) semi-finished materials to a merchant wholesaler.
C) finished products to the distributor.
D) finished products directly from the producer to the retailer.
E) a product from the source of raw materials to consumption.
221) In logistics management, cost-effective decisions imply which of these?
A) While it is important to drive down logistics costs, all channel members must equally benefit
financially or the chain will not function effectively.
B) Speed of delivery must be measured against increased savings in warehousing.
C) While it is important to drive down logistics costs, customer requirements must be a part of
the equation.
D) The need for multiple carriers always results in lower profit margins and therefore should be
avoided.
E) The choice of intermediaries should be made on their ability to perform their tasks
appropriately even if additional costs must be passed on to the consumer.
222) A firm needs to drive down logistics costs as long as it can deliver expected
A) balance sheet results.
B) customer service.
C) low levels of expenses.
D) product-market synergies.
E) target market goals.
223) The various firms involved in performing the activities required to create and deliver a
product or service to ultimate consumers or industrial users are referred to as
A) strategic distribution.
B) distribution management.
C) a supply chain.
D) value chain optimization.
E) logistics.
224) A supply chain refers to
A) the various firms involved in performing the activities required to create and deliver a product
or service to ultimate consumers or industrial users.
B) an inventory management system where the supplier determines the product amount and
assortment a retailer needs and automatically delivers the appropriate items.
C) mathematical formulas and calculations used in determining product volume and demand in
order to generate the greatest revenue at the lowest cost.
D) activities that focus on getting the right amount of the right products to the right place at the
right time at the lowest possible cost.
E) a specialized intermediary in the distribution chain responsible for the coordination of all
production schedules.
225) Which of the following statements best describes how a supply chain differs from a
marketing channel?
A) Communication is more important in the marketing channel than in the supply chain.
B) The marketing channel places more emphasis on cost-effectiveness than the supply chain.
C) A marketing channel includes suppliers that provide raw material inputs to a manufacturer.
D) A supply network moves materials from producer to consumer while a marketing channel
moves materials from the supplier to the producer.
E) A supply chain includes suppliers; marketing channels do not.
226) A ________ is essentially a sequence of linked suppliers and customers in which every
customer is, in turn, a supplier to another customer until a finished product reaches the ultimate
consumer or industrial user.
A) logistical flow
B) demand chain
C) supplier-customer alliance
D) supply chain
E) supply pipeline
227) Customers currently link to Cisco's website to configure, price, and order its networking
equipment. Cisco then sends orders back out across the Internet to producers and assemblers
including Celestica, Flextronics, Jabil, and Solectron. Products are built and tested to Cisco's
standards, sometimes with procedures run remotely by Cisco. Most items are then drop-shipped
to buyers, untouched by Cisco's employees. This is a description of Cisco's
A) virtual logistics.
B) supply chain.
C) electronic data interchange.
D) strategic information alliance.
E) product-specific delivery system.
228) Supply chain management refers to
A) the integration and organization of information and logistic activities across firms for the
purpose of creating and delivering products and services that provide value to ultimate
consumers.
B) organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and
related information from point-of-origin to point-of-consumption to satisfy customer
requirements.
C) the integration and organization of information and logistical activities that actively bring
consumers together with sellers through the express use of agents and brokers.
D) an inventory management system that is designed to reduce the retailer's lead time for
receiving merchandise, which then lowers a retailer's inventory investment, improves customer
service levels, and reduces logistic expenses.
E) a highly organized system that facilitates minute-to-minute communication between all
members of a supply chain and ensures the producer is aware of any changes in delivery or
demand for a product or service.
229) An important feature of supply chain management is its application of ________ that allows
companies to share and operate systems for order processing, transportation scheduling, and
inventory and facility management.
A) wholesaler cooperatives
B) mathematical and statistical models
C) sophisticated information technology
D) continuous inventory management
E) standardized distribution protocols
230) In the automobile industry, the carmaker's ________ manager is responsible for translating
customer requirements into actual orders and arranging for delivery dates.
A) marketing
B) information technology
C) intermodal
D) supply chain
E) financial
231) Supply chain and logistics managers play a large part in the manufacture of automobiles. It
is estimated that logistics costs account for ________ percent of the retail price you pay for a
new car.
A) 1 to 2
B) 4 to 5
C) 8 to 10
D) 12 to 15
E) 25 to 30
232) The choice of a supply chain follows from a clearly defined marketing strategy and
involves three steps: (1) ________, (2) understand the supply chain, and (3) harmonize the
supply chain with the marketing strategy.
A) understand the environment
B) consider the legal consequences of partnering
C) understand the marketing strategy
D) understand the customer
E) understand the company's goals
233) The three steps used in choosing a supply chain are (1) understand the customer, (2)
understand the supply chain, and (3)
A) understand the environment.
B) harmonize the supply chain with the marketing strategy.
C) understand the marketing mix.
D) understand the logistics.
E) understand the company's goals.
