Reference no: EM13936397
Abdul signed a franchise agreement with franchisor Sierra Chocolate to operate a Sierra Chocolate franchise location in California. In the franchise agreement, there were several provisions that restricted business operations, including provisions that Abdul purchase all candy products from Sierra Chocolate and that Abdul not carry other food products and that Abdul would not own or operate any other food business within five mile of the franchise location . The franchise agreement had another provision that required Abdul to represent and warrant that he did not own an interest in any other food business that would violate the restriction. The franchise agreement also contained a termination provision that allowed Sierra to terminate the agreement if Abdul breached any promise in the agreement or if Abdul made any material misrepresentation in connection with the acquisition of the franchise.
After opening the store, Abdul had problems making a profit. He began to make his own candy, using recipes that used less expensive ingredients than those used by Sierra, so that he could sell the candy at a higher profit. Sierra began to receive complaints from customers about the quality of the candy that they purchased at Abdul's store and, after investigating, found that Abdul was making his own candy and that he was selling this candy not only at his Sierra store but also at a bakery that he co-owned with his parents, and which was located down two blocks from the franchise store.
Answer the following questions:
1. Explain whether Sierra would be allowed to terminate the franchise agreement under the California Franchise Relations Act, Business and Professions Code §§ 20000-20043 based upon Abdul's candy making and based upon his co-ownership of the bakery, and include in your answer the specific statute that would apply and whether or not Sierra would be required to give notice and an opportunity to cure.
2. If Abdul were to claim that, before he had purchased the franchise, Sierra representatives had made false claims about the amount of profit he would earn, which aspect of the disclosure document required by the FTC Franchise Rule may be important and what information in that document would be important in analyzing his claim?
|
What array positions are part of the free space list
: What elements are in the list pointed to by list1?What elements are in the list pointed to by list2?
|
|
Identify and analyze legal issues
: Identify and analyze legal issues and to make recommendations based on the provided scenario. Discuss in detail the basis of any challenges to Section. D that any of the parties may have, and evaluate their chances for success
|
|
How could you still implement your strategy
: Using only what you know in the information provided above, how could you still implement your strategy? What is this called? What is the price you would pay for this?
|
|
What amount would need to be established as a hedge
: WAC stands for the weighted average coupon of the pipeline, which is 4.5 percent. What amount would need to be established as a hedge for this?
|
|
California franchise relations act
: Explain whether Sierra would be allowed to terminate the franchise agreement under the California Franchise Relations Act, Business and Professions Code §§ 20000-20043 based upon Abdul's candy making and based upon his co-ownership of the bakery, ..
|
|
Portfolio project based on below case
: Facebook Troubles with User Privacy Imagine that you have been hired to review the case to help the company involved to correct the problems that caused the issues. Develop a report that includes the following elements:
|
|
Predecessor and successor relationships
: The precedence view shows the tasks as they are scheduled using predecessor and successor relationships - Tasks not connected together or joined by arrows can be performed in parallel The load leveled view shows the tasks as scheduled, but consider..
|
|
What factors would you consider in making a decision
: What factors would you consider in making a decision to use options in your pipeline hedging strategy? Under what circumstances would you consider using optimization as a part of the hedge strategy?
|
|
Types of business processes and information systems
: Explain the types of business processes and information systems used in business operations
|