Which of the Following Was the Result in Cousins Subs

question 44

Multiple Choice

Which of the following was the result in Cousins Subs Systems Inc.,v.Michael R.McKinney,the case in the text involving whether the defendant wrongfully terminated a franchise agreement with the plaintiff?

• A) That the defendant rightfully terminated the franchise agreement because the plaintiff made false representations in violation of state statutory law regarding how much money the defendant would make.
• B) That the defendant rightfully terminated the franchise agreement because the plaintiff made false representations in violation of state statutory law regarding the amount of advertising that would be done.
• C) That the defendant rightfully terminated the franchise agreement because the plaintiff made false representations in violation of state statutory law regarding efforts at recruitment of other franchisees.
• D) That the plaintiff did not violate the franchise agreement because the written documents did not contain untrue statements of material facts or omissions of material facts.
• E) That while the plaintiff violated the franchise agreement, the defendant also violated the agreement, and that no damages would therefore be awarded to either party.

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Definitions:

Voting Common Stock

A type of equity security that grants its holders the right to vote on corporate policies and the election of the board of directors.

Consolidation Accounting

A method of accounting in which the financial statements of a parent company and its subsidiaries are combined to present a single economic entity.

Common Stock

A type of equity security that represents ownership in a corporation, with rights to vote and share in profits through dividends.

Voting Stock

Shares of a company that grant the holder the right to vote on company matters, such as electing the board of directors.