If a franchisor retains too much control over the day-to-day operations of a franchisee, it risks incurring what type of liability for the acts of the franchisee's employees?
Explanation
This question addresses the legal risk a franchisor faces when it oversteps the typical boundaries of quality control and exerts excessive control over a franchisee's operations.
Other questions
Which business form is characterized as the simplest, where the owner is the business and no separate legal entity is created?
What is considered the primary disadvantage of operating a business as a sole proprietorship?
According to the text, what is the automatic legal consequence for a sole proprietorship upon the death of the owner?
In the case of Garden City Boxing Club, Inc. v. Dominguez, the fee for broadcasting prizefights was calculated as 20 dollars multiplied by what specific metric of the viewing establishment?
In the case study Garden City Boxing Club, Inc. v. Dominguez, why was Luis Dominguez, the owner of the sole proprietorship Antenas Enterprises, held personally liable for the company's violation of the Cable Communications Act?
Which type of franchise is characterized by a manufacturing concern licensing a dealer to sell its product, often within an exclusive territory, such as an automobile dealership?
What type of franchise arrangement involves the franchisee operating under the franchisor's trade name and being required to follow standardized methods of operation, as seen with fast-food chains?
A franchise where the franchisor provides the franchisee with the essential ingredients or a formula to create a product, which the franchisee then markets, is known as what type of arrangement?
What was the primary purpose of the Franchise Rule issued by the Federal Trade Commission (FTC) in 1978?
If a franchisor makes a sales projection based on actual data for a specific franchise location, what does the Franchise Rule require the franchisor to disclose?
In a franchise agreement, what is the term for the initial fee or lump-sum price paid by the franchisee for the privilege of being granted the franchise?
In the case Kerl v. Dennis Rasmussen, Inc., what did the court state is the key consideration for imposing vicarious liability on a franchisor for the acts of a franchisee?
Under what legal theory are franchise relationships primarily governed?
What is the legal status of a provision in a franchise agreement that requires the franchisee to purchase all of its supplies exclusively from the franchisor?
In the case of Chic Miller's Chevrolet, Inc. v. General Motors Corp., GM was found to have 'good cause' to terminate the franchise because Chic Miller's failed to conduct customary sales and service operations for how many consecutive business days?
What principle do courts generally emphasize when determining whether a franchisor has acted properly in terminating a franchise agreement?
What percentage of sole proprietorships in the United States have revenues of less than 1 million dollars per year?
What is a major advantage of a sole proprietorship regarding its formation?
What is the legal standing of a franchisee in relation to the franchisor?
Which federal act, also known as the Automobile Dealers' Day in Court Act, protects automobile franchisees from unreasonable demands and bad faith terminations by the franchisor?
If a franchise agreement is silent on the issue of territorial rights, and the franchisor allows a competing franchise to be established nearby, what legal principle might a court invoke to find the franchisor's actions improper?
What is a Uniform Franchise Offering Circular (UFOC)?
More than two-thirds of all American businesses are of which business form?
If a franchisor's decision to terminate a franchise was made in the normal course of business operations and reasonable notice was given, a court will normally consider the termination to be what?
Which of the following is NOT listed as an advantage of a sole proprietorship?
In what circumstances does the law governing sales contracts, as expressed in Article 2 of the Uniform Commercial Code, apply to a franchise relationship?
In the case Chic Miller’s Chevrolet, Inc. v. General Motors Corp., the court found GM had good cause for termination after Miller’s failed to operate for seven consecutive business days. What was the dealer's stated reason for being closed?
In a distributorship franchise, what does the manufacturing concern (franchisor) typically license to the dealer (franchisee)?
What is one of the primary legal challenges associated with the quality control provisions in a franchise contract?
What is the primary reason for a franchisor's right to establish and enforce quality standards on a franchisee?
Which of the following must a sole proprietor typically file with the government to start the business?
In a franchise relationship, a franchisee typically pays the franchisor an initial fee for the license and ongoing payments that are usually a percentage of what?
If a franchise agreement provides for a short trial period, such as a year, what is the primary purpose of this provision?
When a franchise is terminated, what must the franchisee typically be given to conclude the business?
In the case *Garden City Boxing Club, Inc. v. Dominguez*, the court found that Antenas Enterprises improperly listed a restaurant as what type of account for billing purposes?
What is the primary factor courts consider when determining if a franchisor can be held vicariously liable for the tortious conduct of its franchisee?
Which of the following is an advantage of a sole proprietorship related to taxation?
In a chain-style business operation, the franchisee is often required to obtain materials and supplies exclusively from whom?
What is the typical consequence if a franchisee is induced to enter into a franchise contract by the franchisor’s fraudulent misrepresentation?
Which of the following would NOT be a typical 'for cause' reason for a franchisor to terminate a franchise agreement?
How is a sole proprietorship's ability to raise capital typically limited?
If a court determines that a franchisor's termination of a franchise was made in the normal course of business and with reasonable notice, what is the likely ruling?
What does a franchise contract typically specify regarding the business premises?
In the case *Kerl v. Dennis Rasmussen, Inc.*, the license agreement between Arby's and the franchisee DRI contained a provision that did what?
Which of the following is a legal right that a sole proprietor has, stemming from the flexibility of the business form?
What federal law prescribes the conditions under which a franchisor of service stations can terminate the franchise?
What do state deceptive trade practices acts typically prohibit in the context of franchising?
In the case *Chic Miller’s Chevrolet, Inc. v. General Motors Corp.*, how did GM demonstrate its good faith during the dispute over floor plan financing?
If a franchise agreement requires the franchisee to have a particular capital structure, this provision would be found in what section of the franchise contract?