A Principal Has the Power to Terminate an Agency Relationship

question 72

True/False

A principal has the power to terminate an agency relationship whether or not the principal has the legal right to terminate that relationship.

Understand the legal framework governing the termination of franchise agreements.

Comprehend the potential liabilities for franchisors regarding the actions of their franchisees.

Grasp the financial obligations that can be imposed on franchisees by franchisors.

Identify the complications that can arise from excessive control by franchisors over their franchisees.

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Definitions:

Expectation

A belief or anticipation about the outcome of an event or situation in the future.

Perceptual Constancy

A tendency of the human perception system to see familiar objects as having standard shape, size, color, and location regardless of changes in the angle of perspective, distance, and lighting.

Reversibility

The ability in cognitive development to understand that actions can be reversed, restoring the original state.

Closure

The psychological term for the need to seek a clear, definitive answer to a question or resolution to an issue to find emotional peace.