Originally ACT II was a privately owned company.In order to expand its business it entered a licensing agreement with one of the largest food manufacturers in the industry.The licensing partner would sell the popcorn under its own brand name in grocery stores and supermarkets.In turn, ACT II agreed it would not

Question

Quizplus · Accepted Answer

The licensing agreement states that the partner will sell the popcorn under its own brand name in grocery stores and supermarkets, thus limiting ACT II's distribution to those channels. However, it does not mention any restriction on global distribution or the use of the ACT II name, therefore options C and D can be eliminated. Option A is also incorrect because it only limits ACT II's sales to supermarkets, not other channels such as movie theaters or online retailers. Option B is too broad and not mentioned in the agreement. Therefore, the best choice is E, which accurately reflects the limitation on ACT II's distribution to U.S. grocery stores and supermarkets for 10 years.

Originally ACT II Was a Privately Owned Company