Which of the Following Statements Is False Regarding Franchises

question 70

Multiple Choice

Which of the following statements is false regarding franchises?

• A)The franchisor has the legal authority to ensure that the franchisee maintains the quality of goods and services associated with the franchise.
• B)The UCC does not apply in the realm of disputes between franchisors and franchisees.
• C)If a franchisor exercises too much authority in the day-to-day affairs of the franchisee's business,the franchisor could be held liable for the torts of the franchisee's employees.
• D)A franchise is a contractual relationship between the franchisor and the franchisee.
• E)The franchisor can set sales quotas and record-keeping requirements.

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