Luxury good marketers found a new way to combat gray market imports into the United States.In March 1995, the U.S.Supreme Court let stand an appeals court ruling prohibiting a discount drugstore chain from selling Givenchy perfume without permission.The distinctive packaging of the perfume is also protected by the U.S.Copyright law.The ruling implies that:
A)Givenchy can only be sold in copyrighted packages.
B)Costco and Wal-Mart will no longer be able to sell Givenchy.
C)Costco and Wal-Mart will be able to sell Givenchy with authorization.
D)gray marketers will be able to market with authorization.
E)discount drugstores cannot market a product resembling Givenchy's perfumes.

Question

Quizplus · Accepted Answer

The ruling prohibits a discount drugstore chain from selling Givenchy perfume without permission but also implies that Costco and Wal-Mart can sell Givenchy with authorization. Thus, luxury good marketers can combat gray market imports by requiring authorized retailers to sell their products in copyrighted packaging and giving permission for authorized retailers like Costco and Wal-Mart to sell their products.

Luxury Good Marketers Found a New Way to Combat Gray