A failure fee is a penalty payment:
A)made by a manufacturer to a retailer for "product demonstration" coupons that were not redeemed by customers during a test market of a new product.
B)assessed by a retailer to a manufacturer to handle new products that were returned by customers as being defective.
C)a wholesaler makes to a retailer as compensation for sales not made while the product was on the shelf.
D)a manufacturer makes to a retailer as compensation for sales not made while the product was on the shelf.

Question

Quizplus · Accepted Answer

A failure fee is a penalty payment made by a manufacturer to a retailer as compensation for sales not made while the product was on the shelf. This fee is often part of a contractual agreement between the manufacturer and retailer, and is intended to incentivize the retailer to stock and sell the product effectively.

A Failure Fee Is a Penalty Payment