Quiz #5 - 1 The most sensitive issue in an international...

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1. The most sensitive issue in an international distribution contract between an exporter and an agent/distributor is: *a. termination. b. advertising. c. territories. d. product line. e. None of the above ~ Yes. Termination can have legal repercussions if it is not done right. In addition, a spurned former agent/distributor can wreak havoc with future marketing efforts by the exporter and/or its new agent/distributor. @ No. Termination can have legal repercussions if it is not done right. In addition, a spurned former agent/distributor can wreak havoc with future marketing efforts by the exporter and/or its new agent/distributor. REF: 5-5 2. When an international distribution contract between an exporter and an agent/distributor is terminated for “just cause,” in most cases the termination is made by the: a. agent/distributor. b. government of the agent/distributor. *c. exporter. d. government of the exporter. e. None of the above ~ Yes. Usually it is the importer not doing something it is required to do, such as meet sales performance objectives, spend a certain percentage of sales on advertising, or maintain the type of establishment spelled out in the contract. Or the representative is doing something that it is contractually not allowed to do. Rarely do exporters fail to fulfill their part of the agreement. @ No. Usually it is the importer not doing something it is required to do, such as meet sales performance objectives, spend a certain percentage of sales on advertising, or maintain the type of establishment spelled out in the contract. Or the representative is doing something that it is contractually not allowed to do. Rarely do exporters fail to fulfill their part of the agreement. REF: 5-5a
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Christopher Reinemann
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