Good Faith in Franchising Relationships. Ernst and Barbara Larese entered into a ten-year franchise agreement with Creamland Dairies, Inc, in 1974. The agreement provided that the franchisee "shall not assign, transfer or sublet this franchise, or any of
Good faith in franchising relationships
The Lareses prevailed. Although the district court ruled that the contract gave the franchisor an unqualified right to refuse to consent to the proposed sale, the court of appeals disagreed. The appellate court held that even though landlords have been given the unqualified right to refuse to allow assignment or subleasing by a tenant, many courts have held that the franchisor franchisee relationship is a special one. The franchisee builds the goodwill of "both his own business" and that of the franchisor. The franchisee has invested time and money in the franchise and in doing so imposes a duty on franchisors not to act unreasonably but to deal with the franchisee in good faith and in a commercially reasonable manner. The court held that the language of the contract does not give to the franchisor the unqualified right to deny consent (although the court held that by express language clearly called to the franchisee's attention it could have done so). Therefore, the court held that consent must be given. "The franchisee should not be forced to choose between losing its investment or remaining in the relationship unwillingly when it has provided a reasonable alternative franchise."
You might also like to view...
Willow Corporation has retained earnings of $320,000. It has 5,000 shares of 6 percent, $100 par value preferred stock outstanding that is callable at 102. The preferred stock is cumulative, and one year of dividends is in arrears. It also has 10,000 shares of $50 par value common stock outstanding. Assume all stock is issued at par. The book value of each share of common stock is
A) $78.00. B) $110.40. C) $81.60. D) $80.00.
Which of the following statements describes a circumstance in which the manufacturer or distributor is liable for selling a defective product according to strict liability in tort?
A) The seller is not engaged in the business of selling the type of product that was found to be defective. B) The product developed by the manufacturer is expected to reach the consumer or user after undergoing substantial change. C) The product develops a defect four years after it was purchased by the consumer. D) The user or consumer has not bought the defective product from or entered into any contractual relation with the seller.
The special list compiled by the Conference Committee of the ILO consists of the list of those member states that have entered into free trade agreements with some other states
Indicate whether the statement is true or false
In considering the decision to customize or standardize its products the global marketing firm must consider the nature of the product. Some products such as steel, fertilizer and agricultural equipment tend to be less _________________ than products such as food.
(a) Globalized (b) Culturally grounded (c) Price sensitive (d) Fully adapted