Question: The following two tables apply to all problem sets: Table#1: Market Share in U.S. Chocolate Bar Market of Major Chocolate Bar Companies (2020) Company Market
The following two tables apply to all problem sets:
| Table#1: Market Share in U.S. Chocolate Bar Market of Major Chocolate Bar Companies (2020) | |
| Company | Market Share (% of US Market) |
| Hershey | 43.3% |
| Mars | 29.8% |
| Lindt/Ghirardilli /R. Stove | 9.1% |
| Ferrero* | 7.0% |
| All others | 10.8% |
*Nestle sold its U.S. chocolate business to Ferrero
To simply matters assume that each chocolate bar company has a single chocolate bar marketed in the USA as noted below:
| Table#2: Representative Chocolate Bar Prices (2020) | ||
| Company | Name of Chocolate Bar | Price ($ per unit) |
| Hershey | Hersheys Chocolate | 0.88 |
| Mars | Snickers | 1.25 |
| Lindt/Ghirardilli /R. Stove | Dark Chocolate Cacao 90% | 4.33 |
| Ferrero | Kinder Chocolate | 2.79 |
Ferrero Company is offering a promotion to its customers. Send the company one dollar plus 4 wrappers of any companys chocolate bar and the company collects $306,924 from its customers.
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How much does this chocolate company maintain it has to pay Chappell, the copyright holder of Rockin shoes? Show your calculations. [A1/B1] (3 marks)
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How much does Chappell maintain that it must be paid in copyright royalties? Show your calculations? [A1/B1/C1] (4 marks)
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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. (maximum 25 words) [C2] (3 marks)
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