The Franchisor Is Liable for the Contracts Entered into and Torts

question 34

True/False

The franchisor is liable for the contracts entered into and torts committed by the franchisee while the franchisee is acting within the scope of the apparent agency.

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Definitions:

Activity Level

The volume of production or the degree of activity in a business operation, which can affect variable costs.

Earn Income

The process of receiving payment through work, investments, or business operations.

Unit Variable

A measurement that reflects how variable costs change per unit of production or activity level.

Unit Fixed

This specifies a cost or charge that remains constant per unit regardless of changes in the level of activity or volume of production.