As the licensing program coordinator for your school, you evaluate proposals from vendors who want to make

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As the licensing program coordinator for your school, you evaluate proposals from vendors who want to make or sell merchandise with the school’s name, logo, or mascot. If you find the product acceptable, the vendor pays a $250 licensing fee and then 6.5% of the wholesale cost of the merchandise manufactured (whether or not it is sold). The licensing fee helps to support the cost of your office; the 6.5% royalty goes into a student scholarship fund. At well-known universities or those with loyal students and alumni, the funds from such a program can add up to hundreds of thousands of dollars a year.

On your desk today is a proposal from a current student, Parker Winston.image text in transcribedimage text in transcribed

The design and product are acceptable under your guidelines.
However, you’ve always enforced the fee structure across the board and you see no reason to make an exception now.
Whether the person trying to sell merchandise is a student doesn’t matter; your policy is designed to see that the school benefits whenever it is used to sell something. Students aren’t the only ones whose cash flow is limited; many businesses would find it easier to get into the potentially lucrative business of selling clothing, school supplies, and other items with the school name or logo if they got the same deal Parker is asking for. (The policy also lets the school control the kinds of items on which its name appears.) Just last week, your office confiscated about 400 t-shirts and shorts made by a company that had used the school name on them without permission; the company has paid the school $7,500 in damages.
Write a letter to Parker rejecting their special requests. They can get a license to produce the t-shirts, but only if they pay the $250 licensing fee and the royalty on all shirts made.

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Business Communication

ISBN: 9781265045630

13th Edition

Authors: Kitty O. Locker, Jo Mackiewicz, Jeanine Elise Aune, Donna S. Kienzler Professor

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