June 1993 LSAT Section 3 Question 11

The author discusses the impact of gray marketing on goodwill in order to

Mikhail1710 on August 25 at 03:50AM

Hi, why is the answer: indicate a way in which manufacturers sustain damage against which they ought to be protected

Hi, Why is the answer: indicate a way in which manufacturers sustain damage against which they ought to be protected Why not: highlight one way in which gray marketing across markets is more problematic than gray marketing within a market? OR Why not:demonstrate that gray marketing does not always benefit the interests of unauthorized distributors? Thank you.

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Emil-Kunkin on August 25 at 08:08PM

There is just nothing in the passage to suggest that the reduction in goodwill is different between in market and out of market grey marketing. Do you see something that would support this?

Nor is this a reason that it would hurt the grey marketers. The reduction in goodwill hurts the trademark owners, and I don't really see in the passage how it would hurt the grey marketers. The reduction in goodwill might lead the grey marketers to move onto other products and stop selling the grey marketed product, but this hurts the trademark holder and does not directly hurt the grey marketer.

B is right because the author uses this as an example of how trade mark holders are harmed by grey marketers, and the author tells us that trademark holders are justified in the argument that it harms goodwill.