Heinz paid $1M to Sobeys and Metro to have their new 'Purple EZ Squirt Ketchup' placed at the front of the condiments aisle in each of the respective stores. However, sales for the Ketchup did not reach the pre-agreed upon targets. Heinz then paid another $500,000 to both Sobeys and Metro. This payment is considered a(n):
A)unsold fee
B)slotting fee
C)failure fee
D)compensation fee

Question

Quizplus · Accepted Answer

The payment made by Heinz to Sobeys and Metro after failing to meet sales targets is considered a "failure fee," which is a penalty paid when sales do not reach the agreed-upon levels.

Heinz Paid $1M to Sobeys and Metro to Have Their