Proximate cause: this principle states that the cause of the loss must be closely connected with the risk insured against.
5a.
5b. The wholesaler: the wholesaler purchases goods in bulk or large quantity from the manufacturer and sells in small quantities to the retailers. The wholesaler acts as a middleman between the manufacturers and the retailers.
FUNCTIONS OF THE WHOLESALER
The wholesaler buys goods in large quantities from the manufacturer.
He informs the manufacturer about the market situation.
The wholesaler completes the process of production such as packaging and labeling.
He reduces the burden of storage on the producer.
He sells in smaller quantities to the retailer.
The wholesaler offers credit facility to the retailer.
He informs the retailer on how best to use the goods
bii. Retailer: this is a small scale trader who buys goods from the wholesaler and sells in bits or units to the consumers who are the end users of the goods. The retailer is the link between the wholesaler and the consumer.
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