The goods in the case (packaged food and delicatessen), which are distributed to retailers worldwide, are of high value and much capital is tied up in them. Owning the goods involves great risks. Damages to the goods, or their loss,might lead to heavy losses for the company. The goods may rapidly lose quality and become unsalable. Changes in currency and interest rates might make the ownership more costly than intended. In addition, the company owning the goods cannot use the capital for investments elsewhere. To allocate responsibility for the risks of tying up capital in the goods, the CC and the LSP agree that the LSP will buy the goods from the CC, pay for and assume ownership of them. The LSP does not assume the traditional function of a wholesaler/distributor, as it is limited in creating assortment,setting price, choosing suppliers/customers, etc. (Specht, 1988). There is no intent in the case to let the LSP consume the purchased goods or sell them on the open market. The LSP agrees to sell the goods to buyers (retailers) included in the CC’s group. The CC and the retailers have agreed upon the terms of these sales, and the LSP agrees to these terms. Economic consequences of risks connected to these sales, e.g. while the goods are transported or in storage, will, according to the contract between the LSP and the CC, be transferred to the latter company.