Which of the Following Is a Franchisor Problem

question 29

Multiple Choice

Which of the following is a franchisor problem?

• A)Attempts to require franchisees to buy products exclusively from the franchisor may violate the Sherman Act.
• B)Attempts to require adherence to prices set by the franchisor may violate the Sherman Act.
• C)Cannot use insurance to cover risks due to torts committed by the franchisee.
• D)The franchisee has to be made an employee of the franchisor.

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Definitions:

Principles

Fundamental truths, beliefs, or propositions that serve as the foundation for a system of belief or behavior or for a chain of reasoning.

Patronage System

A political arrangement where government jobs are given based on political affiliation and loyalty rather than merit or competence.

Government Jobs

Employment positions within federal, state, or local government agencies.

Party Faithful

Loyal members and supporters of a particular political party who consistently support the party's policies and candidates.