CHAPTER 25

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1. Price discrimination is

the ability of one member of the distribution channel to influence another
failing to provide similar pricing terms to competing customers for equivalent volumes of sales at equivalent times
setting unreasonably low prices to eliminate competition
attempting to drive the retail price upward and imposing recriminations on noncompliant retailers
conspiring to fix the bidding process to suit the collective needs of suppliers

2. Bid rigging is

the ability of one member of the distribution channel to influence another
failing to provide similar pricing terms to competing customers for equivalent volumes of sales at equivalent times
setting unreasonably low prices to eliminate competition
attempting to drive the retail price upward and imposing recriminations on noncompliant retailers
conspiring to fix the bidding process to suit the collective needs of suppliers

3. Predatory pricing is

the ability of one member of the distribution channel to influence another
failing to provide similar pricing terms to competing customers for equivalent volumes of sales at equivalent times
setting unreasonably low prices to eliminate competition
attempting to drive the retail price upward and imposing recriminations on noncompliant retailers
conspiring to fix the bidding process to suit the collective needs of suppliers

4. Price maintenance is

the ability of one member of the distribution channel to influence another
failing to provide similar pricing terms to competing customers for equivalent volumes of sales at equivalent times
setting unreasonably low prices to eliminate competition
attempting to drive the retail price upward and imposing recriminations on noncompliant retailers
conspiring to fix the bidding process to suit the collective needs of suppliers

5. Bid rotation is

a process whereby a preselected supplier submits the lowest bid on a systematic and rotating basis
an agreement among suppliers not to compete in designated geographic regions or for specific customers
an arrangement in which suppliers have agreed to submit token bids that are unreasonably high
an agreement among suppliers to either abstain from bidding or withdraw bids
none of the above

6. Market division is

a process whereby a preselected supplier submits the lowest bid on a systematic and rotating basis
an agreement among suppliers not to compete in designated geographic regions or for specific customers
an arrangement in which suppliers have agreed to submit token bids that are unreasonably high
an agreement among suppliers to either abstain from bidding or withdraw bids
none of the above

7. The factors that distinguish pyramid selling from legal forms of multilevel marketing include

all participants have a genuine chance of profit
participants are required to purchase large quantities of products for resale
there is a genuine opportunity for distributorships to expand
profits on sales are shared by participants who are higher up the chain than the actual seller
participants are rewarded for recruiting new participants

8. Telemarketing is an example of

door-to-door selling
direct marketing
illegal activity
internet marketing
none of the above

9. Door-to-door selling is regulated primarily by

common law
provincial legislation
federal legislation
industry associations
none of the above

10. "c.i.f." stands for

contract is interest-free
carries interest and fees
cost, insurance, freight
cost, interest, freight
cash, interest, free