Which of the Following Is False Regarding Franchises

question 21

Multiple Choice

Which of the following is false regarding franchises?

• A) The franchisor can set sales quotas and record-keeping requirements.
• 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 UCC does not apply in the realm of disputes between franchisors and franchisees.
• D) A franchise is a contractual relationship between the franchisor and the franchisee.
• E) 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.

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Definitions:

Fair Courts

Judicial systems that operate impartially and justly, ensuring equality before the law without favoritism or discrimination.

Seaport Towns

Coastal towns with harbors where ships can dock to load and unload cargo or passengers.

Commercial Transactions

Business activities or endeavors that involve the exchange of goods, services, or funds between two or more parties.

Implied-In-Fact Contract

A contract formed by the actions or conduct of the parties involved, rather than written or spoken words.