MasteringGMAT
Under United States law, a distinctive package design can be legally protected against copying. Lorex shampoo, a leading brand, is packaged in a triangular-shaped bottle with a gold label. A major pharmacy chain has introduced a similar, less expensive shampoo in similarly shaped bottles with plain black-and-white labels carrying the chain's name. Though the triangular shape is distinctive, the manufacturer of Lorex has not legally challenged its use for the chain's shampoo.
Which of the following, if true, provides the strongest reason for the manufacturer of Lorex not to challenge the chain's use of the triangular package design?
A. The manufacturer of Lorex depends on sales on the willingness of the chain to stock Lorex and other of the manufacturer's products.
B. The black-and-white labeling of the chain's shampoo indicates to the consumer that irrelevant expense has been spared in order to bring the product to the consumer at a lower cost.
C. The cost of manufacturing the chain's shampoo is substantially lower than the cost of manufacturing Lorex.
D. Lawsuits brought for the purpose of protecting distinctive package designs are generally successful.
E. The manufacturer of Lorex also manufactures other shampoos, and those shampoos are not sold in triangular-shaped.
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A distinctive package design can be legally protected against copying.
Lorex shampoo, has a triangular-shaped bottle with a gold label.
A major pharmacy chain has introduced a similar, less expensive shampoo with plain black-and-white labels
the triangular shape is distinctive
Unexpected Outcome: the manufacturer of Lorex has not legally challenged its use for the chain's shampoo.
We have to resolve the paradox. Why has the Lorex manufacturer not legally challenged the chain?
A. The manufacturer of Lorex depends on sales on the willingness of the chain to stock Lorex and other of the manufacturer's products.The wording is a bit off - perhaps it is actually 'for sales'.
It says that the Lorex manufacturer depends on the chain for sale of his products. The chain stocks his products and sells them.
This could be a good reason why Lorex did not file a legal complaint. Filing a complaint may lead to huge financial losses because the chain may refuse to stock its products, losses much larger than what the chain may take away with a similar bottle of shampoo.
B. The black-and-white labeling of the chain's shampoo indicates to the consumer that irrelevant expense has been spared in order to bring the product to the consumer at a lower cost.This makes the chain's shampoo more attractive to consumers compared to Lorex and is a reason to file the complaint.
C. The cost of manufacturing the chain's shampoo is substantially lower than the cost of manufacturing Lorex.Irrelevant. The point is why the copying of design has not been challenged.
D. Lawsuits brought for the purpose of protecting distinctive package designs are generally successful.More of a reason to file a complaint.
E. The manufacturer of Lorex also manufactures other shampoos, and those shampoos are not sold in triangular-shaped.Irrelevant.
Answer (A)Here is a discussion on explain the paradox questions: https://youtu.be/7mckzPg-xjo