Plum sells high-end computers, tablets, and smart phones in Virginia. Plum sees its primary market as hip millennials, who wear glasses with thick black frames. The law of Virginia prohibits Plum from putting any conditions on selling its goods, and Plumb must sell to any retailer willing to pay Plum’s wholesale prices. Which of the following best describes the allocation of rights between Plum and its retailers? A. Plum has a property right to set retail prices and service levels. B. Plum’s entitlement to set retail price and service levels is protected by a liability rule. C. Plum retailers have a property right to set retail prices and service levels. D. Plum retailers’ entitlements to set retail price and service levels is protected by an inalienability rule. E. Both A and C
Plum sells high-end computers, tablets, and smart phones in Virginia. Plum sees its primary market as hip millennials, who wear glasses with thick black frames. The law of Virginia prohibits Plum from putting any conditions on selling its goods, and Plumb must sell to any retailer willing to pay Plum’s wholesale prices. Which of the following best describes the allocation of rights between Plum and its retailers? A. Plum has a property right to set retail prices and service levels. B. Plum’s entitlement to set retail price and service levels is protected by a liability rule. C. Plum retailers have a property right to set retail prices and service levels. D. Plum retailers’ entitlements to set retail price and service levels is protected by an inalienability rule. E. Both A and C
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