In a Franchise Arrangement,one Business Enters into a Contract with Another

question 46

Multiple Choice

In a franchise arrangement,one business enters into a contract with another to sell its products exclusively.Which of the following is true with respect to a franchise?

• A)The franchisee provides the technical expertise to manage the franchise.
• B)The franchisor must comply with rules,standards,and specifications with respect to products and prices.
• C)Examples of franchises in Canada include Tim Hortons,KFC,and Budget Car Rental.
• D)An advantage of a franchise arrangement is the equal bargaining position of the parties.
• E)The franchisee and franchisor are in partnership together.

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Definitions:

Discharged by Agreement

A situation where the parties involved decide to release each other from the obligations of a contract, effectively ending the contract.

Operation of Law

Changes in legal rights or obligations that occur automatically due to established legal rules, without the need for action by the parties involved.

Discharged

Refers to the completion or termination of an obligation or responsibility, such as a debt being paid off or a contractual duty being fulfilled.

Frustration of Purpose

A legal doctrine that excuses a party from fulfilling a contract when an unforeseen event undermines the contract's original reason.