In the promotion that is offered for the CD Rockin' Shoes, assume that the number of CDs
Question:
In the promotion that is offered for the CD “Rockin' Shoes,” assume that the number of CDs sent out to customers equals 287,324 and the royalty percentage is 12.5%. Each customer is to put inside an envelope a stamped self-addressed envelope with sufficient postage for a CD plus other content as described below:
A Hershey Company is offering a promotion to its customers. Send the company one dollar plus 3 wrappers of any company's chocolate bar and the company collects $287, 324 from its customers.
(1) How much does this chocolate company maintain it has to pay Chappell, the copyright holder of Rockin' shoes? Show your calculations.
(2) How much does Chappell maintain that it must be paid in copyright royalties? Show your calculations?
(3) Based on the precedent of Chappell v Nestle, what level of royalties would a judge, under these circumstances, mandate that the chocolate company pay Chappell? Briefly explain.
Basic Business Statistics
ISBN: 978-0321870025
13th edition
Authors: Mark L. Berenson, David M. Levine, Kathryn A. Szabat