Question

Greyer Corp, manufactures surgical instruments. Systems Medico Inc. enters into a contractual arrangement with Greyer that allows it to use Greyer’s manufacturing methods and management structure to produce and sell surgical instruments. Systems Medico must pay a yearly fee to Greyer for the use of its manufacturing processes. In this scenario, Systems Medico is the:_________________.

Answer 1

Answer: Licensee

Step-by-step explanation:

Licensee is defined as the person who holds the licence after receiving it. He/she is known as license holder who receives it from the licensor. Licensee has the official right and permit to use a service or good.

According to the question, Greyer Corp. is granting the license to System Medico as a licensor so that they can indulge with them to manufacture and sell surgical tools.

For this agreement ,System Medico is paying a yearly fee in the form of permit (license) to access the services of Greyer Corp along with the agreement in the form of licensee