Term
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Definition
| When a group of competing retailers establishes a fixed price at which to sell certain brands of products |
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Definition
| When a retailer collaborates with a manufacturer or wholesaler to resell an item at an agreed-upon price; also referred to as resale price maintenance or fair trade |
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Definition
| When two retailers buy identical amounts of "like grade and quality" merchandise from the same supplier but pay different prices |
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Definition
| An unfair method of competition in which an item is advertised at an artificially low price and then hidden charges are added at checkout |
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Definition
| When a retailer charges different prices in selected geographic areas in order to eliminate competition in those areas |
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Term
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Definition
| When a retailer represents merchandise as being made by someone other than the true manufacturer |
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Definition
| When a retailer makes false or misleading advertising claims about a products physical makeup or its use or the benefits from its use |
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Term
| Bail-and-Switch Advertising |
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Definition
| Deceptive advertising in which one product is promoted at an unrealistically low price to entice a customer before the customer is switched to a higher-priced product; also called bait-and-switch pricing |
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Definition
| Laws that invoke the "foreseeability" doctrine-- a seller of a product must attempt to foresee how a product may be misused and warn the consumer against the hazards of misuse |
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Definition
| Warranties that result from interactions between retailers and customers; may be written into the contract or orally stated |
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Term
| Implied Warranty of Merchantability |
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Definition
| When a retailer implies that goods are fit for the ordinary purpose for which such goods are typically used; applies to both new and used merchandise |
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Term
| Slotting Fees (slotting allowances) |
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Definition
| Fees paid by a vendor for space (a slot) on a retailers shelves as well as having a slot in the retailers computer system for its UPC number; also called a slotting allowance |
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Definition
| An unwritten but well understood set of rules or standardxs of moral responsibility |
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Term
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Definition
| A written policy that states what constitutes ethical and unethical behavior |
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Term
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Definition
| A set of rules or standards of moral responsibility for moral human behavior; often take the form of dos and don'ts |
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Term
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Definition
| When a seller with a strong product or service forces a buyer (the retailer) to purchase a weak product or service as a condition for buying the stronger one. |
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Term
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Definition
| When a manufacturer sells to independent retailers while simulataneously selling directly to the final consumer through its own retail outlets or through an Internet site |
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Term
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Definition
| Attempts by a supplier, usually a manufacturer, to limit the geographic area in which a retailer may resell its merchandise |
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Term
| Implied Warranty of Fitness |
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Definition
| When a customer relies on a retailer to assit in or select goods to serve a particular purpose |
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Term
| One-Way Exclusive-Dealing Arrangement |
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Definition
| When a supplier gives a retailer the exclusive right to sell a product in a particular trade area but without the retailer agreeing to do anything in particular for the supplier |
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Term
| Two-Way Exclusive-Dealing Agreement |
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Definition
| When a supplier offers a retailer the exclusive distribution of a merchandise line or product if the retailer agrees to do something for the manufacturer in return |
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