Gray marketing, the selling of trademarked products through channels of distribution not authorized by the trademark holder, can involve distribution of goods either within a market region or across market boundaries. Gray marketing within a market region (“channel flow diversion”) occurs when manufacturer-authorized distributors sell trademarked goods to unauthorized distributors who then sell the goods to consumers within the same region. For example, quantity discounts from manufacturers may motivate authorized dealers to enter the gray market because they can purchase larger quantities of a product than they themselves intend to stock if they can sell the extra units through gray marketing channels.
When gray marketing occurs across market boundaries, it is typically in an international setting and may be called “parallel importing.” Manufacturers often produce and sell products in more than one country and establish a network of authorized dealers in each country. Parallel importing occurs when trademarked goods intended for one country are diverted from proper channels (channel flow diversion) and then exported to unauthorized distributors in another country.

Trademark owners justifiably argue against gray marketing practices since such practices clearly jeopardize the goodwill established by trademark owners: consumers who purchase trademarked goods in the gray market do not get the same “extended product,” which typically includes pre- and postsale service. Equally important, authorized distributors may cease to promote the product if it becomes available for much lower prices through unauthorized channels.

Current debate over regulation of gray marketing focuses on three disparate theories in trademark law that have been variously and confusingly applied to parallel importation cases: universality, exhaustion, and territoriality. The theory of universality holds that a trademark is only an indication of the source or origin of the product. This theory does not recognize the goodwill functions of a trademark. When the courts apply this theory, gray marketing practices are allowed to continue because the origin of the product remains the same regardless of the specific route of the product through the channel of distribution. The exhaustion theory holds that a trademark owner relinquishes all rights once a product has been sold. When this theory is applied, gray marketing practices are allowed to continue because the trademark owners’ rights cease as soon as their products are sold to a distributor. The theory of territoriality holds that a trademark is effective in the country in which it is registered. Under the theory of territoriality, trademark owners can stop gray marketing practices in the registering countries on products bearing their trademarks. Since only the territoriality theory affords trademark owners any real legal protection against gray marketing practices, I believe it is inevitable as well as desirable that it will come to be consistently applied in gray marketing cases.

1) Which one of the following best expresses the main point of the passage?
(A) Gray marketing is unfair to trademark owners and should be legally controlled.
(B) Gray marketing is practiced in many different forms and places, and legislators should recognize the futility of trying to regulate it.
(C) The mechanisms used to control gray marketing across markets are different from those most effective in controlling gray marketing within markets.
(D) The three trademark law theories that have been applied in gray marketing cases lead to different case outcomes.
(E) Current theories used to interpret trademark laws have resulted in increased gray marketing activity.

2) The function of the passage as a whole is to
(A) criticize the motives and methods of those who practice gray marketing
(B) evaluate the effects of both channel flow diversion and parallel importation
(C) discuss the methods that have been used to regulate gray marketing and evaluate such methods’ degrees of success
(D) describe a controversial marketing practice and evaluate several legal views regarding it
(E) discuss situations in which certain marketing practices are common and analyze the economic factors responsible for their development

3) Which one of the following does the author offer as an argument against gray marketing?
(A) Manufacturers find it difficult to monitor the effectiveness of promotional efforts made on behalf of products that are gray marketed.
(B) Gray marketing can discourage product promotion by authorized distributors.
(C) Gray marketing forces manufacturers to accept the low profit margins that result from quantity discounting.
(D) Gray marketing discourages competition among unauthorized dealers.
(E) Quality standards in the manufacture of products likely to be gray marketed may decline.

4) The information in the passage suggests that proponents of the theory of territoriality would probably differ from proponents of the theory of exhaustion on which one of the following issues?
(A) the right of trademark owners to enforce, in countries in which the trademarks are registered, distribution agreements intended to restrict distribution to authorized channels
(B) the right of trademark owners to sell trademarked goods only to those distributors who agree to abide by distribution agreements
(C) the legality of channel flow diversion that occurs in a country other than the one in which a trademark is registered
(D) the significance consumers attach to a trademark
(E) the usefulness of trademarks as marketing tools

5) The author discusses the impact of gray marketing on goodwill in order to
(A) fault trademark owners for their unwillingness to offer a solution to a major consumer complaint against gray marketing
(B) indicate a way in which manufacturers sustain damage against which they ought to be protected
(C) highlight one way in which gray marketing across markets is more problematic than gray marketing within a market
(D) demonstrate that gray marketing does not always benefit the interests of unauthorized distributors
(E) argue that consumers are unwilling to accept a reduction in price in exchange for elimination of service

6) The author’s attitude toward the possibility that the courts will come to exercise consistent control over gray marketing practices can best be characterized as one of
(A) resigned tolerance
(B) utter dismay
(C) reasoned optimism
(D) unbridled fervor
(E) cynical indifference

7) It can be inferred from the passage that some channel flow diversion might be eliminated if
(A) profit margins on authorized distribution of goods were less than those on goods marketed through parallel importing
(B) manufacturers relieved authorized channels of all responsibility for product promotion
(C) manufacturers charged all authorized distributors the same unit price for products regardless of quantity purchased
(D) the postsale service policies of authorized channels were controlled by manufacturers
(E) manufacturers refused to provide the “extended product” to consumers who purchase goods in the gray market

A wire that weighs 24 kilograms is cut into two pieces so that one of the pieces weighs 16 kilograms and is 34 meters long.  If the weight of each piece is proportional to its length, how many meters long is the other piece of wire?

A) 8
B) 11
C) 13
D) 17
E) 20

Unlike that of the Native Americans of British Columbia, the Plains, and the Southwest, those of Puget Sound lived in relatively small, autonomous villages.

(A)  Unlike that of
(B)  Unlike those of
(C)  Unlike
(D)  In contrast to that of
(E)  Dissimilar to

Applying for MBA abroad your TOEFL may be waived if candidates

Have spent at least 3 years in the U.S. studying toward completion of an undergraduate degree,
OR
Have completed a graduate degree in the U.S. or worked in the U.S. at least 2 years
OR
Applicants from India who received their undergraduate degree from an institution where all classes were taught in English can request for TOEFL test waiver.

Happy New Year 2012

Achievers Family wish you a v v v Very Happy New Year 2012

Which of the following best completes the passage below?
In today?s pluralistic society, textbook publishers find themselves in an increasingly uncomfortable position. Since the schools are regarded as a repository of society?s moral and cultural values, each group within society wishes to prevent any material that offends its own values from appearing in textbooks. As a result, stance on an issue is certain to run afoul of one group or another. And since textbook publishers must rely on community goodwill to sell their books, it is inevitable that______

(A) fewer and fewer publishers will be willing to enter the financially uncertain textbook industry
(B) the ethical and moral content of textbooks will become increasingly neutral and bland
(C) more and more pressure groups will arise that seek to influence the content of textbooks
(D) the government will be forced to intervene in the increasingly rancorous debate over the content of textbooks
(E) school boards, teachers, and principals will find it nearly impossible to choose among the variety of textbooks being offered

Some biographers have not only disputed the common notion that Edgar Allan Poe drank to excess but also questioned whether he drank at all.
(A) have not only disputed the common notion that Edgar Allan Poe drank to excess but also
questioned whether he drank
(B) not only have disputed the common notion that Edgar Allan Poe drank to excess but also
over whether he drank
(C) have disputed not only the common notion that Edgar Allan Poe drank to excess but also
whether he may not have drunk
(D) not only have disputed the common notion that Edgar Allan Poe drank to excess but also
questioned whether or not he had drunk
(E) have disputed the common notion not only that Edgar Allan Poe drank to excess but also
questioned whether he may not have drunk

Four dollar amounts, w, x, y, and z, were invested in a business. Which amount was greatest?

1. y < z < x

2. x was 25 percent of the total of the four investments.

Selected Possible Answer

(more…)

If n and k are positive integers, is n divisible by 6?

(1) n = k(k + 1)(k – 1)
(2) k > 1 is a multiple of 3.
A. Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
B. Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
C. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
D. EACH statement ALONE is sufficient.
E. Statements (1) and (2) TOGETHER are NOT sufficient.

A calendar stick carved centuries ago by the Winnebago tribe may provide the first evidence that the North American Indians have developed advanced full-year calendars basing them on systematic astronomical observation.

(A) that the North American Indians have developed advanced full-year calendars basing them
(B) of the North American Indians who have developed advanced full-year calendars and based them
(C) of the development of advanced full-year calendars by North American Indians, basing them
(D) of the North American Indians and their development of advanced full-year calendars based
(E) that the North American Indians developed advanced full-year calendars based

In one state , all cities and most towns have antismoking ordinance . A petition entitled petition for statewide smoking restriction is being circulated to voters by campaign workers who ask only. Do you want to sign a petition for statewide smoking restriction the petition advocates a state law banning smoking in most retail establishments and in government offices that are open to the public .

Which of the following circumstances would make the petition as circulated misleading to voters who understand the proposal as extending the local ordinances statewide ?

A. The state law would not affect existing local ordinances baning smoking in places where the fire authorities have determined that smoking would constitute a fire hazard

B. Health costs associated with smoking cause health insurance premiums to rise for everyone and so affect nonsmokers

C. In rural areas of the state, there are relatively few retail establishment and government offices that are open to the public

D. The state law would supersede the local antismoking ordinances, which contain stronger bans than the state law does

E. There is considerable sentiment among voters in most areas of the state for restriction of smoking

hi
I am preparing for GMAT and came across a question for which I had no answer. Can you please publish the question so that I can discuss about it in you forum? The question is described below:

A man chooses an outfit from 3 different shirts, 2 different pairs of shoes, and 3 different pants. If he randomly selects 1 shirt, 1 pair of shoes, and 1 pair of pants each morning for 3 days, what is the probability that he wears the same pair of shoes each day, but that no other piece of clothing is repeated?

(1)(1/3)pow6(1/2)pow3
(2)(1/3)pow6(1/2)
(3)(1/3)pow4
(4)(1/3)pow2(1/2)
(5)5X(1/3)pow2

N.B: pow = power

If x and y are different prime numbers, each greater than 2, which of the following must be true ?

I. x+y ? 91
II. x–y is an even integer.
III. x/y is not an integer.

A) II only
B) I and II only
C) I and III only
D) II and III only
E) I, II, and III

A researcher discovered that people who have low levels of immune-system activity tend to score much lower on tests of mental health than do people with normal or high immune-system activity. The researcher concluded from this experiment that the immune system protects against mental illness as well as against physical disease.
The researcher’s conclusion depends on which of the following assumptions?

A) High immune-system activity protects against mental illness better than normal immune-system activity does.

B) Mental illness is similar to physical disease in its effects on body systems.

C) People with high immune-system activity cannot develop mental illness.

D) Mental illness does not cause people’s immune-system activity to decrease.

E) Psychological treatment of mental illness is not as effective as is medical treatment.

A man chooses an outfit from 3 different shirts, 2 different pairs of shoes, and different pants. If he randomly selects 1 shirt, 1 pair of shoes, and 1 pair of pants each morning for 3 days, what is the probability that he wears the same pair of shoes each day, but that no other piece of clothing is repeated?the answer is (1/3)^4

I’m not sure how to reach this answer from the question. Could someone explain?

Which of the following best completes the passage below?

In a survey of job applicants, two-fifths admitted to being at least a little dishonest. However, the survey may underestimate the proportion of job applicants who are dishonest, because____.

A) some dishonest people taking the survey might have claimed on the survey to be honest

B) some generally honest people taking the survey might have claimed on the survey to be dishonest

C) some people who claimed on the survey to be at least a little dishonest may be very dishonest

D) some people who claimed on the survey to be dishonest may have been answering honestly

E) some people who are not job applicants are probably at least a little dishonest

If y is the smallest positive integer such that 3; 150 multiplied by y is the square of an integer, then y must be

A) 2
B) 5
C) 6
D) 7
E) 14

Of the 500 business people surveyed, 78 percent said that they use their laptop computers at home, 65 percent said that they use them in hotels, and 52 percent said that they use them both at home and in hotels. How many of the business people surveyed said that they do not use their laptop computers either at home or in hotels?

A) 45
B) 55
C) 65
D) 95
E) 130

What is the hundreds digit of the integer z?

(1) 10z = 93,120
(2) z rounded to the nearest hundred is 9,300.

A. Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
B. Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
C. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
D. EACH statement ALONE is sufficient.
E. Statements (1) and (2) TOGETHER are NOT sufficient.

The total cost of an office dinner was shared equally by k of the n employees who attended the dinner. What was the total cost of the dinner?

(1) Each of the k employees who shared the cost of the dinner paid $19.
(2) If the total cost of the dinner had been shared equally by k + 1 of the n employees who attended the dinner, each of the k + 1 employees would have paid $18.

A. Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
B. Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
C. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
D. EACH statement ALONE is sufficient.
E. Statements (1) and (2) TOGETHER are NOT sufficient.

The underlying physical principles that control the midair gyrations of divers and gymnasts are the same as the body orientation controlling astronauts in a weightless environment.

(A) as the body orientation controlling
(B) as the body orientation which controls
(C) as those controlling the body orientation of
(D) ones to control the body orientation of
(E) ones used in controlling the body orientation of