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1. David Ungar holds a Dunkin’ Donuts franchise. The terms of his franchise agreement require him to use only those ingredients furnished by Dunkin’ Donuts. He is also required to buy its napkins, cups, and so on, with the Dunkin’ Donuts trademark on them. Is this an illegal tying arrangement? What if Dunkin’ Donuts maintains that it needs these requirements to maintain its quality levels on a nationwide basis? [Ungar v. Dunkin’ Donuts of America, Inc., 429 U.S. 823]
2. Hines Cosmetic Co. sold beauty preparations nationally to beauty shops at a standard or fixed- price schedule. Some of the shops were also supplied with a free demonstrator and free advertising materials. The shops that were not supplied with them claimed that giving the free services and materials constituted unlawful price discrimination. Hines replied that there was no price discrimination because it charged everyone the same. What it was giving free was merely a promotional campaign that was not intended to discriminate against those who were not given anything free. Was Hines guilty of unlawful price discrimination? Explain.
Language differences, government regulations, cultural differences pose great ch allenges and risks to global sourcing. The benefits of global sourcing overshadow the risks:
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A “race-to-the-bottom” process may set in as Multinational enterprises (MNEs) search for ever-lower-cost locations. Discuss the trade-offs between the positive effects of raising the standard of living in some of the worlds poorest countries with the..
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Make 6,000 stuffed animals with a marketing budget of $600,000. This makes you work under demand and with less inherent risk. Make 7,000 stuffed animals to meet the forecast with a marketing budget of $700,000.
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