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Retail Marketing (Sales Specialist) Grade 3 | Retail and Wholesale Classification and Franchise Questions 02

1 / 100.0s

Problem 1

Under the Japan Standard Industrial Classification, a stationery shop sells a small quantity of office notebooks to a school. Which business category includes this transaction?

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A school is an industrial user, but selling goods to an industrial user in small quantities or for a small amount is included in retail trade. A sale to an organization or school is not automatically wholesale; the quantity, value, and intended use also matter.

Problem 2

A medical equipment supplier sells a hospital a large diagnostic system used primarily for business operations. Which category best describes this activity under the Japan Standard Industrial Classification?

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Wholesale trade includes large-volume or high-value sales to industrial users such as hospitals, as well as sales of equipment used mainly for business. The hospital's being the final user of the system does not by itself make the transaction retail.

Problem 3

A bakery makes bread on its premises and sells it at the same shop to consumers for household use. Which treatment is appropriate under the Japan Standard Industrial Classification?

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A bakery or confectionery that makes goods and sells them at the same location to consumers for personal or household use is classified as manufacturing-retail within retail trade. A manufacturer that has no store and sells its own products only by mail order is treated differently.

Problem 4

A food manufacturer has no sales outlet and sells only jam made in its own factory to households over the internet. What is the most appropriate classification under the Japan Standard Industrial Classification?

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When a manufacturing establishment has no store and sells only its own products by mail order, it is classified under manufacturing. This differs from a non-store retailer that buys goods from other businesses and resells them by mail order.

Problem 5

A bookstore with a physical shop begins accepting online orders and shipping books from the same establishment. Which statement about its classification is appropriate?

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When a retail establishment with a store also conducts mail order, it remains on the store-retail side and is classified according to the main merchandise it carries. Non-store retail generally covers establishments without a store that sell through communications or similar methods.

Problem 6

A seller drives around local neighborhoods in a vehicle loaded with vegetables and sells face to face to consumers. Which treatment is appropriate under the Japan Standard Industrial Classification?

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Vehicle-based mobile selling and street-stall selling are not included in the non-store retail division; they are classified in retail trade according to the merchandise handled. Sales through vending machines are included in non-store retail, so they are distinguished from a mobile sales vehicle.

Problem 7

A shop sells bicycles and also repairs bicycles of the same kind as those it sells. Which treatment of the shop is appropriate under the Japan Standard Industrial Classification?

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An establishment that sells goods and repairs goods of the same kind is classified in wholesale or retail trade. A repair-only establishment is classified as a service business, and replacing parts as part of a repair does not by itself count as selling goods.

Problem 8

An establishment does not own the goods but earns commission by arranging sales of goods to individuals. Which description of this activity is appropriate under the Japan Standard Industrial Classification?

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Even without owning the goods, an establishment that earns commission or other compensation by acting as an agent or broker for retail sales, including sales to individuals, falls within a prescribed retail category. Lack of ownership alone does not remove it from commerce.

Problem 9

A prospective franchisee thinks, "Because I will use the same sign as the franchisor, my outlet will become one of the franchisor company's branches and will no longer be an independent business." Which explanation is appropriate?

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A franchisor and its outlets may look like a head office and branches, but the franchisee is legally an independent business. Receiving the right to use trademarks and know-how does not remove the need to understand the contract and make business decisions under the franchisee's own responsibility.

Problem 10

A franchisor covered as a specified chain business under Japan's Act on the Promotion of Small and Medium-sized Retail Businesses tells a prospective franchisee, "We will explain the important matters orally after you sign the franchise agreement." Which response is appropriate?

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A covered franchisor must provide the prospective franchisee with a written document describing the business outline and principal contract terms, and explain it before the agreement is signed. Merely handing over a document without explanation, or explaining matters orally only after signing, does not provide the required pre-contract information.