A(n) _____ is a penalty that a retailer or wholesaler assesses to a vendor that actually or allegedly has violated an agreed-upon distribution policy or procedure.
A) chargeback
B) functional allowance
C) reinforcement allowance
D) payback expense
E) tangible penalty

Question

Quizplus · Accepted Answer

A chargeback is a financial penalty imposed on a vendor by a retailer or wholesaler for not adhering to agreed-upon distribution policies or procedures. This can include issues like late shipments, incorrect product labeling, or failure to meet specified product standards. Chargebacks are used as a way to enforce compliance and recover costs associated with the vendor's failure to meet contractual obligations.

A(n) _____ Is a Penalty That a Retailer or Wholesaler