Economics > ANSWERS AND COMMENTARIES > Ethics 321 Week 5 Apply. University of Phoenix ETHICS 321 . (All)
Ethics 321 Week 5 Apply 1. Examine each scenario and decide the legality of the company's decision or action. No prompt matches this answer This is legal as long as no agreements are made with a co... mpetitor. Gilcorp wants to increase its profitability. It tries to gain new customers by offering a cash bonus to customers who switch to its service from another company. Which of the following is true of this action? This is legal. Luanicorp wants to increase its profitability. It agrees with another company, Wescorp, to divide the market so that all customers north of a state line must come to one company for services, and all customers south of the state line must go to the other. The companies will then be free the deal with their customers as they wish. Which of the following is true of this situation? This is illegal per se. Vericorp wants to increase its profitability. It rearranges its distribution services so that it can serve customers in certain areas better, while leaving other areas where competitors are stronger unattended. The company makes no agreement with a competitor in doing so. Which of the following is true of this action? This may be illegal under the rule of reason. 6 / 6 (100.0%) Answer: Luanicorp wants to increase its profitability. It agrees with another company, Wescorp, to divide the market so that all customers north of a state line must come to one company for services, and all customers south of the state line must go to the other. The companies will then be free the deal with their customers as they wish. Which of the following is true of this situation?: This is illegal per se. Gilcorp wants to increase its profitability. It tries to gain new customers by offering a cash bonus to customers who switch to its service from another company. Which of the following is true of this action?: This is legal. Vericorp wants to increase its profitability. It rearranges its distribution services so that it can serve customers in certain areas better, while leaving other areas where competitors are stronger unattended. The company makes no agreement with a competitor in doing so. Which of the following is true of this action?: This may be illegal under the rule of reason. No prompt matches this answer: This is legal as long as no agreements are made with a competitor. 2. Blinkorp is selling toys to retailers across the nation. Depending on the season, the company may make its toys with either higher-cost domestic plastics or lower-cost foreign plastics. The retailers who purchase from Blinkorp complain about the different prices caused by the differently-priced materials. Which of the following is true? o Blinkorp is justified in charging different prices because the toy industry is so flexibleo Blinkorp is justified in charging different prices because of the differing production co Blinkorp is justified in charging different prices because it needs to meet the price of nationwide. [Show More]
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