Exam 30: Sole Proprietorships and Franchises

Teresa buys a franchise from Urgent Medical Clinics,LLC. If their agreement is like most franchise agreements,it will specify that Urgent Medical can terminate the franchise

Good faith and fair dealing are not important in terminating a franchise relationship.

Mix n' Match Clothing Corporation gives notice to Neely that Mix n' Match is terminating their franchise arrangement. Winding up the business requires

A franchisor can suggest retail prices for the goods that a franchisee sells but cannot mandate them.

As a means of controlling quality,franchise agreements typically limit the franchisee's ability to sell the franchise to another party.

Bob is the sole proprietor of ClamBooks,an electronic book subscription service. As a sole proprietor,on the business's profits,Bob pays

In a sole proprietorship,the proprietor shares the burden of any losses or liabilities incurred by the business enterprise with the government.

Fong contracts to buy a franchise from Genuine Asian Sushi House Company. In this contract,as in most franchise contracts,the determination of the territory to be served is made by

Restful Inn Motel Corporation wants to terminate its franchise arrangement with Steve's Cabins. Their contract does not provide for notice of termination or set a time for winding up the business. This means that to wind up,Steve's

Esperanza is interested in buying a franchise from Fire Mountain Gemstones,Inc. Fire Mountain must disclose material facts that Esperanza needs to make an informed decision concerning this purchase,according to

A sole proprietor pays personal and business income taxes on the business's profits.

State deceptive trade practices acts do not apply to actions by franchisors.

Oberon buys a Pro Club Health & Fitness,Inc.,franchise,which the franchisor later terminates. In determining whether the termination was proper,a court will generally

Eudora is interested in buying a franchise from First Home Realty Company. In this transaction,the Federal Trade Commission's Franchise Rule

As a general rule,the validity of a provision permitting the franchisor to establish and enforce certain quality standards is questionable.

The laws governing franchising are primarily designed to protect franchisors from dishonest franchisees.

The federal government regulates franchising through laws that apply to specific industries.

Mai-Lin's Martial Arts,Inc.,grants a franchise to Naomi to operate a Mai-Lin's school. Mai-Lin's may require Naomi to pay the franchisor a percentage of her

A sole proprietorship lacks continuity on the death of the proprietor.

Any suit against the business or its employees does not lead to unlimited personal liability for the owner of a sole proprietorship.