Fern Contracts to Buy a Franchise from Gooseberry Grocers, Inc

question 41

Multiple Choice

Fern contracts to buy a franchise from Gooseberry Grocers, Inc. The contract is silent on the issue of territorial rights. Gooseberry allows a competing franchise to be established near Fern's store, which suffers a significant loss in profits. This is most likely a violation of

• A) no law.
• B) the ban on certain types of anticompetitive agreements.
• C) the Federal Trade Commission's Franchise Rule.
• D) the implied covenant of good faith and fair dealing.

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Definitions:

Extra Total Utility

The additional satisfaction or benefit that a consumer derives from consuming one more unit of a good or service.

Current Consumption

The amount of goods, services, energy, or natural resources being used by consumers or industries at the present time.

Marginal Utility

The additional satisfaction or benefit obtained from consuming one more unit of a good or service.

Hypothetical Consumer

A theoretical or imagined individual used in economic models to predict behaviors in market scenarios.