Franchise rule has most likely been violated

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Reference no: EM131729164

1. The school year is about to start and employees of ABC Corporation have been taking supplies from the supply room for their children. What crime has likely been committed?

A. Robbery.

B. Burglary.

C. Larceny.

D. Obtaining goods by false pretenses.

E. Embezzlement.

2. Frank enters into a written franchise agreement to open a “Grande Burrito” store. Grande Burrito represents that Frank will realize at least $500,000 in gross sales during his first year. During Frank’s first year he only brings in $83,000 in gross sales. What FTC Franchise Rule has most likely been violated?

A. There was not a reasonable basis for the gross sales representation.

B. Grande Burrito did not indicate whether the anticipated gross sales were based on actual data or hypothetical examples.

C. None of the above.

D. a. and b.

Reference no: EM131729164

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