The 'Good Cause' Clause Means That the Contract Can Be

question 30

Multiple Choice

The 'good cause' clause means that the contract can be terminated if a franchisee:

• A) Asks for training and business advice
• B) Engages in some type of breach of contract
• C) Is good in handling operations
• D) Pays royalty

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Definitions:

Peter Principle

A theory suggesting that people are promoted to their level of incompetence in a hierarchical organization.

Primacy Effect

The tendency to remember and give greater importance to information that is encountered first in a sequence.

Self-Serving Bias

A common cognitive bias where individuals attribute positive events to their own character but attribute negative events to external factors.

Actor-Observer Effect

A cognitive bias in which people tend to attribute their own actions to external circumstances but attribute others' actions to their personalities or character.