Doug Obtains an Exclusive Franchise to Sell Widgets for the Acme

question 68

Multiple Choice

Doug obtains an exclusive franchise to sell widgets for the Acme Widget Company.The exclusive franchise covers the entire State of Wisconsin for a period of three years.In this case:

• A) Acme is obligated to use its best efforts to supply the goods only if this clause appears in the written franchise agreement.
• B) according to the UCC,unless otherwise agreed,Doug must use his best efforts to promote the sale of the widgets in his territory.
• C) under the UCC,such an agreement lacks consideration.
• D) consideration is not required because this is a moral obligation.

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Definitions:

Undisputed Compensation

Payment or remuneration that is acknowledged and accepted by all parties involved as fair and just, without any objections.

Operation Of Law

Changes in rights or obligations that occur automatically due to existing legal rules, without the need for an agreement or court order.

Renunciation

The formal rejection of a claim, right, or possession, often involving legal ramifications.

Termination Option

A termination option is a contract provision that allows a party to end the agreement under specified conditions before its natural conclusion.