Merchargy is a firm that supplies garments to apparel stores. Merchargy discovered that one of its customers, Apricoress, a large apparel store, had been selling the products sourced from Merchargy at exorbitant rates. As this was a violation of their trade contract, Merchargy filed a suit against Apricoress on the grounds of fraud and won the case. Apricoress incurred huge losses because of the compensation it had to pay Merchargy. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations.

Question

Quizplus · Accepted Answer

The scenario best illustrates the effect of the legal component on organizations as Merchargy filed a lawsuit against Apricoress for violating their trade contract, which resulted in Apricoress incurring huge losses due to the compensation it had to pay Merchargy.

Merchargy Is a Firm That Supplies Garments to Apparel Stores