Exam 31: Sole Proprietorships and Private Franchises

Riley is interested in buying a franchise from Soft Shoe Corporation.Soft Shoe must disclose material facts that Riley needs to make an informed decision concerning this purchase,according to

A franchise agreement between Simple Software Company and Total Game,Inc.,is silent on a time for termination of the franchise.Simple may

The termination provision of a franchise contract is usually more favorable to the franchisor.

A franchisor cannot impose quality standards on a franchisee.

One of the disadvantages of a sole proprietorship is that the owner is liable for the losses of the business.

Fred starts up,and assumes the financial risk of,Graphic Ads,a new marketing enterprise.Fred is

Most fast-food chains are distributorships.

Stacy contracts to buy a franchise from Tender Steak House Company.In this contract,as in most franchise contracts,the determination of the territory to be served is made by

A franchise is a form of business organization.

In choosing a form of business organization for a new enterprise,important factors include the ambiance of the home office.

Most franchise agreements provide that termination must be "for cause."

A franchisor can suggest retail prices but cannot mandate them.

Kelly,the owner of Llama Farms,a sole proprietorship,wants to obtain additional business capital but to maintain control.This can best be accomplished by

Normally,a franchisee determines the territory that it will serve.

Rita buys a Super Grill franchise.Super Grill requires that its franchisees buy its products for every phase of their operations.Because Rita wishes to buy less expensive products,she challenges the requirement.Her best argument is probably that the requirement violates

If a party to a franchise contract fails to perform,he or she may be subject to a suit for breach of contract.

Under no circumstances may a franchisor establish an additional franchise in a territory allotted to a franchisee.

Contract law governs franchise relationships.

In choosing a form of business organization for a new enterprise,important factors include the ease of creation.

In choosing a form of business organization for a new enterprise,important factors include the titles of the organization's officers.