66) ________ involve the flow of merchandise through distribution channels, usually across
international borders, other than those authorized or intended by the manufacturer or producer.
A) Reverse auctions
B) Chargebacks
C) Lift-outs
D) Gray-market goods
E) Exclusive dealing arrangements
67) Which of the following prohibits vendors offering different retailers different prices and
purchase order terms for the same merchandise and quantity?
A) Tying contracts
B) Robinson-Patman Act
C) Resale price maintenance
D) Buybacks
E) Copyright infringement Act
68) Janine buys swimwear for a chain of apparel stores. At a recent trade show, she took the
opportunity to meet with a few vendors. During a meeting with the vendor that she normally
purchased from each season, he proposed a weekend in the Cayman Islands to view the swimwear
that European tourists were wearing. Janine knows that it would be beneficial to see what
European tourists are wearing and then translate what she is seeing into her assortment for her
target customers. Before continuing her discussions with the vendor, what should she do?
A) She should ensure that all her work is completed before she leaves for an extended weekend.
B) She must inform her divisional merchandise manager of the proposal.
C) She should look at her budget to see how much product she would be able to purchase from this
vendor this season.
D) She should see what other vendors might be offering.
E) She should check to see if there might be a better place than the Cayman Islands to scope out
swimwear trends.
69) Steve buys men’s dress shirts for Martin’s, a clothing retailer. At a recent trade show, he took
the opportunity to see a few new vendors. During one meeting, a vendor proposed a ticket to a
high-profile college football game. Steve graciously declined because he was concerned he would
be engaging in
A) commercial bribery.
B) free-riding.
C) greenwashing.
D) an exclusive dealing.
E) a tying contract.
70) ________, also known as stocklifts or lift-outs, are activities engaged in by vendors with
retailers to get their products into retail stores.
A) Charge backs
B) Buybacks
C) Greenwashing
D) Co-op advertising
E) Reverse auctions
71) A(n) ________ exists when a vendor and a retailer enter into an agreement that requires the
retailer to take a product it doesn’t necessarily desire to ensure that it can buy a product that it does
desire.
A) exclusive dealing agreement
B) functional discount
C) competition
D) buyback
E) tying contract
72) A vendor’s recent shipment at the retailer’s distribution center was on time, but the boxes were
mislabeled along with other infractions against the retailer’s mandated shipment policies. What
should the retailer do?
A) Pay the vendor invoice immediately to assure deliveries are still on time in the future.
B) Initiate legal proceedings against the vendor.
C) Accept the vendor’s gifts to repay the inconvenience infractions.
D) Issue a chargeback.
E) Send the shipment back.
73) ________ is a socially responsible movement that ensures that producers receive adequate
prices for their products.
A) Green sheen
B) Whitewashing
C) Black marketing
D) Fair trade
E) Licensed branding
74) Companies are practicing ________, which is the practice of marketing products or services as
being environmentally friendly with the purpose of gaining public approval and sales rather than
actually improving the environment.
A) green sheen
B) whitewashing
C) black marketing
D) fair trade
E) unlicensed branding
75) What are some of the benefits of offering store brands?
76) If there are so many advantages to carrying private brands, why do retailers even bother to sell
national brands?
77) Why do national brands often generate lower gross margins for retailers than private-label
brands?
38
78) What are some of the drawbacks of using store brands?
79) Identify and describe the different options that retail buyers of national brands have to see new
products and meet with vendors.
80) What are some of the costs associated with sourcing merchandise globally?
81) What are the major issues that a buyer discusses during a meeting with a vendor?
82) Describe the four phases in the development of strategic partnering relationships that are
characterized by increasing levels of involvement.
83) What is counterfeit merchandise? How can it negatively impact the market, and what are the
ethical aspects?
84) When is a gift or favor considered to be commercial bribery?