Which of the Following Does the FTC Franchise Rule Require

question 28

Multiple Choice

Which of the following does the FTC franchise rule require from franchisors?

• A)registration of the disclosure document with the FTC before it's used
• B)full presale disclosures to prospective franchisees nationwide
• C)statement to fully finance the infrastructure necessary to bring the franchisee to the franchisor's standard
• D)disclosure of license agreement made with franchisee that lets the franchisee use the franchisor's service mark

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Definitions:

Express Warranty

A written guarantee provided by a seller about the quality or nature of a product, promising specific standards or conditions.

Implied Warranty

A legal assumption in commerce that goods are reasonably fit for the general purpose for which they are sold, even if not expressly stated.

Operation of Law

A way in which rights or liabilities are automatically transferred or changed due to existing legal rules, rather than the action of the parties.

Implied Warranty

An unwritten and unspoken guarantee that a product or service will meet a minimum level of quality and will perform as expected, even though it is not explicitly stated in a contract.