Midas Muffler Sells Its Business Name and the Rights to Its

question 39

Multiple Choice

Midas Muffler sells its business name and the rights to its products to prospective business persons who want to use the Midas name and offer Midas products.In this arrangement,Midas would be the __________,and the buyer of these rights is the ____________.

• A)owner;limited partner
• B)wholesaler;retailer
• C)co-signer;co-signee
• D)franchisor;franchisee

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Definitions:

Fraud

Wrongful or criminal deception intended to result in financial or personal gain.

Equal Bargaining Power

The situation in which all parties involved in a negotiation or agreement have similar negotiating strength and no one side has undue influence over the other.

Quasi Contract

An obligation imposed by law to prevent unjust enrichment, even though the parties involved did not enter into a contractual agreement.

Restitution

A legal principle requiring a party to return or compensate for any loss or harm they have caused to another.