Reese and Janelle own a boutique in the United States.Recently they took a trip to China and while there,the couple purchased a large quantity of name-brand handbags for a cost significantly lower than what the manufacturer charges for the same product in the United States.Upon their return,the couple sold the handbags in their store for less than any other store in the area.This is an example of what takes place in a(n)_______ market.
A) black
B) gray
C) unsupervised
D) oligopolistic
E) unauthorized

Question

Quizplus · Accepted Answer

This scenario describes gray market activity, which involves the sale of legitimate goods through unauthorized distribution channels, often at prices lower than those charged by authorized channels. While the goods may be authentically produced by the manufacturer, their sale through unofficial channels may violate trademark or copyright laws.

Reese and Janelle Own a Boutique in the United States