Exam 40: Franchise and Special Forms of Business

In a(n) ________ franchise, the franchisor licenses the franchisee to make and sell its products or services to the public from a retail outlet serving an exclusive geographical territory.

Apparent agency arises when a franchisee creates the appearance of being a franchisor's agent when in fact an actual agency does not exist.

In an area franchise, the franchisor authorizes the franchisee to negotiate and sell franchises on behalf of the franchisor.

Which of the following is true of intellectual property of a franchisor?

A franchise is established when parties of a general partnership conduct business outside the state of their incorporation.

A ________ refers to an arrangement between two or more companies whereby they agree to ally themselves and work together to accomplish a designated objective.

When is a franchisor allowed to terminate a franchise? Why are termination-at-will clauses generally held to be void?

In which of the following types of franchise does a franchisor provide a secret formula or process to the franchisee?

Ubiquitous Enterprises is a franchisee of HotPan chain of restaurants. One afternoon, Linda, an employee of a HotPan restaurant owned by the franchisee, is mopping the floor. Gary, a customer who enters the restaurant is talking on his cell phone and does not notice Linda mopping the floor. He slips on the wet floor while walking to the counter and is injured. Who among the following is liable for Gary's injuries?

Explain the concept of joint venture as a business arrangement in brief.

________ is a business arrangement that occurs when the owner of intellectual property contracts to permit another party to use the intellectual property.

Rio-Werner Corporation owns Rio's Sandwiches, a fast-food restaurant in New Jersey. It wants to operate in five cities on the west coast by means of franchisees which make and sell all menu items from Rio's Sandwiches. Which of the following would best suit Rio-Werner Corporation's franchise plan?

Which of the following is true of a franchise that was terminated-at-will by a franchisor?

Where should the Federal Trade Commission (FTC) franchise notice appear?

In a(n) ________ franchise, the franchisor authorizes the franchisee to negotiate and sell franchises on behalf of the franchisor.

Intrepid Creations is a product design institute which provides educational courses in package design. It manages to acquire the right to use simulation software from Marco Software for a payment of $2,000 a year. There is no clause of expiration on this arrangement and the right to access the software is renewed annually. Which of the following kinds of business arrangements does the aforementioned scenario indicate?

Which of the following mandatorily requires a license to be operational and legal?

Termination-at-will clauses in franchise agreements are generally held to be void.

The ________ is a uniform disclosure document that requires a franchisor to make specific presale disclosures to prospective franchisees.

Which of the following does the Federal Trade Commission (FTC) franchise rule require from franchisors?