{"id":181286,"date":"2025-01-10T09:40:12","date_gmt":"2025-01-10T09:40:12","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=181286"},"modified":"2025-01-10T09:40:15","modified_gmt":"2025-01-10T09:40:15","slug":"coolbrands-international-has-entered-an-agreement-with-binney-smith-to-create-a-line-of-frozen-novelties-based-on-the-crayola-brand","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/01\/10\/coolbrands-international-has-entered-an-agreement-with-binney-smith-to-create-a-line-of-frozen-novelties-based-on-the-crayola-brand\/","title":{"rendered":"CoolBrands International has entered an agreement with Binney & Smith to create a line of frozen novelties based on the Crayola brand"},"content":{"rendered":"\n

CoolBrands International has entered an agreement with Binney & Smith to create a line of frozen novelties based on the Crayola brand, including pops, bars, sandwiches, cups, cones, sundaes and shakes. CoolBrands will pay Binney & Smith a royalty for the right to use the Crayola trademark. This is an example of:<\/p>\n\n\n\n

Group of answer choices<\/p>\n\n\n\n

contract manufacturing<\/p>\n\n\n\n

limited partnership<\/p>\n\n\n\n

cooperative agreement<\/p>\n\n\n\n

a licensing agreement<\/p>\n\n\n\n

joint venture<\/p>\n\n\n\n

The Correct Answer and Explanation is :<\/strong><\/mark><\/p>\n\n\n\n

The correct answer is a licensing agreement<\/strong>.<\/p>\n\n\n\n

A licensing agreement<\/strong> is a legal contract in which the owner of a trademark, brand, or intellectual property (IP) grants permission to another company (the licensee) to use their IP under specified terms. In this case, CoolBrands International is paying Binney & Smith a royalty fee to use the Crayola trademark to create a line of frozen novelties. This arrangement fits the definition of a licensing agreement because Binney & Smith, the owner of the Crayola brand, is allowing CoolBrands to use the Crayola trademark in exchange for compensation (royalty payments).<\/p>\n\n\n\n

Explanation:<\/h3>\n\n\n\n
    \n
  1. Contract Manufacturing<\/strong>: This would involve one company manufacturing products for another company based on their specifications. However, CoolBrands is not simply manufacturing Crayola-themed products but is licensing the use of the trademark for a new product line.<\/li>\n\n\n\n
  2. Limited Partnership<\/strong>: A limited partnership involves two or more parties coming together to operate a business where one or more parties have limited liability, but that is not the case here. This arrangement does not involve shared ownership or management of a business venture.<\/li>\n\n\n\n
  3. Cooperative Agreement<\/strong>: A cooperative agreement typically refers to an arrangement where both parties work together toward a shared goal, often with joint funding and resource sharing. While CoolBrands and Binney & Smith are collaborating, the relationship described here focuses on licensing rights rather than resource pooling or co-investing.<\/li>\n\n\n\n
  4. Joint Venture<\/strong>: A joint venture is when two companies come together to form a new business entity and share the profits and risks. However, this case involves CoolBrands using Crayola’s trademark, not forming a new business entity with shared profits or risks.<\/li>\n<\/ol>\n\n\n\n

    Thus, the licensing agreement<\/strong> is the correct term for this scenario because it involves CoolBrands obtaining the right to use the Crayola trademark for a specific product line while compensating Binney & Smith with royalty payments.<\/p>\n","protected":false},"excerpt":{"rendered":"

    CoolBrands International has entered an agreement with Binney & Smith to create a line of frozen novelties based on the Crayola brand, including pops, bars, sandwiches, cups, cones, sundaes and shakes. CoolBrands will pay Binney & Smith a royalty for the right to use the Crayola trademark. This is an example of: Group of answer […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-181286","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/181286","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=181286"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/181286\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=181286"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=181286"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=181286"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}