Which of the Following Statements Is True

question 68

Multiple Choice

Which of the following statements is true?

• A) Generally, the franchisor can terminate the franchisee's agreement at will.
• B) Generally, the franchisor can terminate the franchisee's agreement at will, but only if the contract so provides.
• C) Generally, the franchisor can terminate the franchisee's agreement, but only for a legitimate cause.
• D) Many states have enacted laws requiring "just cause" before any franchise agreement can be terminated.
• E) Franchises cannot be terminated without the consent of the franchisee.

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Definitions:

Capital Goods

Long-lasting goods acquired by firms for producing goods and services, including machinery, buildings, and equipment.

Market System

An economic system where the allocation of resources and the distribution of goods and services are determined by supply and demand in a free market.

Government Prescribes

Refers to regulations or directives made by a government to influence or control certain activities.