Chocolate Chips

Multiple Choice

Chocolate Chips.Molly makes great chocolate chip cookies and sells them.She calls them "Molly's Famous Chocolate Chips." Some of her friends are interested in selling her cookies.They want to use her name and identify the cookies as "Molly's Famous Chocolate Chips." Molly says,however,that she does not have enough time to bake any more cookies.She agrees,for a price,to allow her friends to use her recipe and her name.Suzette,one of Molly's friends who was selling the cookies,was not being sufficiently careful and negligently put a harmful ingredient into the cookie dough resulting in a customer,Fred,becoming ill.Fred threatens to sue both Suzette and Molly.Molly is so exasperated that she cancels all the franchise contracts on the basis of aggravation although the franchise agreements provided that so long as requirements were met,the franchise agreements were good for a period of two years,Molly took the position that the cookies involved a personal service and that she could not be held liable for discontinuation.Is Molly correct that she was entitled to cancel all franchise agreements?

A) No,she was not entitled to cancel any franchise agreements.
B) No,while she was arguably justified in canceling Suzette's franchise agreement,she was not justified in canceling other franchise agreements because no breach of the other franchise agreements had occurred.
C) No,she could only cancel all franchises after a judgment was entered against her,and that had not yet occurred.
D) Yes,because a personal service type of franchise was involved,she could cancel all the franchises at will.
E) Yes,she can cancel the franchises but only if she can establish that her profits were less than had been expected.