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Author Question: Options require consideration to be valid. Indicate whether the statement is true or ... (Read 22 times)

Starlight

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on: Jun 24, 2018
Options require consideration to be valid.
  Indicate whether the statement is true or false

Question 2

Louis Vuitton is a manufacturer of luggage, purses, wallets, and briefcases and is internationally known for its classic LV design on its products. Vuitton has authorized two U.S. importers to handle its products with the caveat that the products are to be sold only in the finer department stores and Vuitton-authorized dealers and franchises. One dealer has been selling the Vuitton products at substantial discounts to a wholesaler in the Los Angeles garment district. Discuss Vuitton's rights in this situation.


cdmart10

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Reply #1 on: Jun 24, 2018
Answer to Question 1

TRUE

Answer to Question 2

Vuitton is experiencing the gray market - the authorization for sales of goods is being exceeded with the resultant flooded market and reduced price. However, under current law there is little hope for Vuitton controlling the imports by the LA dealer. Vuitton may have to take the action of terminating the wholesaler.


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