Which of the Following Is False Regarding Franchises

question 10

Multiple Choice

Which of the following is false regarding franchises?

• A)The franchisee often receives help from the franchisor in starting the franchise.
• B)The franchisor has the legal authority to ensure that the franchisee maintains the quality of goods and services associated with the franchise.
• C)The franchisor is not liable for torts of the franchisee's employees,regardless of the amount of control exerted by the franchisor.
• D)A franchise is a contractual relationship between the franchisor and the franchisee.
• E)The Federal Trade Commission has a franchise rule requiring franchisors to present prospective franchisees with the material facts necessary for the franchisee to make an informed decision about entering a franchise relationship.

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Definitions:

Wagner Act

Also known as the National Labor Relations Act of 1935, it is a foundational statute of US labor law which guarantees basic rights of private sector employees to organize into trade unions, engage in collective bargaining, and take collective action such as strikes.

Taft-Hartley Act

A 1947 federal law that restricted the activities and power of labor unions in the United States.

Landrum-Griffin Act

A 1959 U.S. federal law formally known as the Labor-Management Reporting and Disclosure Act, which aims to protect union members' rights and promote democracy within labor organizations.

Pure Monopsonist

A market condition where there is only one buyer for a product or service, giving this buyer significant control over the market.