The firm SABL (Stencil Apparel Brands Ltd.) is an international subsidiary of Lacoste, the French firm that owns the Lacoste (Alligator) logo and brand. Manufacturing and marketing knitwear (the famous Lacoste Polo shirt) as well as a large variety of sportswear, the firm is promoted through excellent advertising and endorsements by numerous major sports personalities. Sourcing its products from a number of international high quality, but low cost suppliers in Malaysia, Indonesia, and the Far East, SABL is now introducing a new brand Stencil, launching its new lines from its Head Office in Paris, France. As a first step Stencil plans to open about 20 exclusive outlets in France. These are expected to be franchisee exclusive outlets, privately owned stores that will partner with SABL. SABL expects substantial 'down payments' for these contracts from the private partners to SABL, as well as ongoing royalties that will be paid as a percentage of sales revenues. SABL shall monitor and control prices to maintain uniformity across the country. SABL insists on high investments in a consistent dcor and arrangement pattern that is critical to the SABL pre-pack, an unusual system of inventory arrangement and stacking. Highly innovative, this system though effective involves high investments in modular stacking arrangements that are incompatible with conventional apparel stacking systems. Other than the 20 exclusive outlets SABL also plans to market its product through up-market supermarket and department store chains across France. However it hopes to minimize conflict between the exclusive and non-exclusive channels, by presenting its latest and premium lines at the exclusive outlets alone. Doing this may involve some skilled negotiation, since some of the chains expect a high revenue, so may be expected to demand "the best products." Further, even though supermarket chains are 'non-exclusive' outlets, in that they carry products other than Stencil, SABL still would like to insist that within the 'knitwear' category the chains carry only the STENCIL brand. It is expected that some Chains may agree to this condition, but some may not. 3. Opportunistic Behavior: One possibility is that Exclusive Outlets as well as the Chains may exhibit Opportunistic Behavior. Describe and elaborate on behavior that may be described as opportunistic. (a) Here give two examples of the behavior that may be expected from the supermarket chains and, (b) Two types of behavior that may be expected from the exclusive outlets. Note: In your examples find distinct or non-repetitive types of opportunistic behavior. (a) and (b) should be examples that are different from one another. 4. Specify regulations and clauses relating to information flows that SABL may include in contracts to ensure visibility of intentions and trust, as well as reduce opportunistic behavior. 5. Greater stability may be ensured by having elements in contracts that lead to (a) a high cost of executing the contract, and (b) a high cost of dissolving a contract. Write out such clauses that the company SABL may include in their contract with the Supermarket Chains. Please write the clauses exactly as they would be written in the contract. 6. Suggest (a) two behavior based controls or incentives that SABL may use with the Exclusive Outlets (b) two outcome based controls or incentives that SABL may use with the supermarket chains