Premium Essay

Bus Law

In: Business and Management

Submitted By kam620
Words 10587
Pages 43
FRANCHISES AND SPECIAL FORMS OF BUSINESS

40

Seoul, South Korea This is a KFC restaurant in Seoul, South Korea. International franchising of American brands to foreign countries—and foreign countries’ brands to the United States—exploded in the late twentieth century. Franchising on a global scale continues unabated in the twenty-first century.

CHAPTER OBJECTIVES
After studying this chapter, you should be able to: 1. Define franchise and describe the various forms of franchises. 2. Describe the rights and duties of the parties to a franchise agreement. 3. Identify the contract tort liability of franchisors and franchisees. 4. Define licensing and describe how trademarks and intellectual property are licensed. 5. Describe how international franchising, joint ventures, and strategic alliances are used in global commerce.

CHAPTER CONTENTS
ISBN 0-558-40229-1

INTRODUCTION TO FRANCHISES AND SPECIAL FORMS OF BUSINESS FRANCHISE

FRANCHISE AGREEMENT

International Law • International Franchising
LIABILITY OF FRANCHISOR AND FRANCHISEE

Contemporary Environment • FTC Franchise Notice

Case 40.1 • Martin v. McDonald’s Corporation 629

Business Law: Legal Environment, Online Commerce, Business Ethics, and International Issues , Seventh Edition, by Henry R. Cheeseman. Published by Prentice Hall. Copyright © 2010 by Pearson Education, Inc.

630

PART VIII

BUSINESS ORGANIZATIONS AND ETHICS LICENSING JOINT VENTURE STRATEGIC ALLIANCE

Contemporary Environment • Franchisor and Apparent Agency
TERMINATION OF A FRANCHISE

Case 40.2 • Dunkin’ Donuts of America, Inc. v. Middletown Donut Corporation

“It has been uniformly laid down in this Court, as far back as we can remember, that good faith is the basis of all mercantile transactions.”
—Judge Buller Salomons v. Nisson (1788)

INTRODUCTION TO FRANCHISES AND SPECIAL FORMS OF BUSINESS

Similar Documents

Free Essay

Bus Law

...Bus Law II Writing Assignment Due: September 18, 2014 NO. 3 This is the case of Joe vs. Sam. Joe was driving with his wife which, was in the passenger seat. Joe carelessly rear-ended Sam’s truck, shattering a taillight. Both Joe and Sam got out of the vehicles and Sam, who was incensed, approached Joe with his fists raised. He hit Joe’s dog instead of Joe. Joe was very emotionally distressed at having his dog hurt, and broke Sam’s nose. Sam pulled out a handgun and shot Joe. Sam would receive compensatory damages for Joe’s careless driving when he rear-ended Sam’s truck. Joe failed to exercise the standard of care that a reasonable person would exercise in similar circumstances by hitting the vehicle and breaking his nose. But at the same time, Joe would receive compensatory and punitive damages for Sam shooting Joe. Sam did unnecessary damage to Joe by shooting him. Sam committed assault even though he did not actually hit Joe. Sam created a reasonable fear of immediate harmful when his fists were raised in the air. In Sam’s defense, he could tell the court that he did not have Mens Rea to actually hit Joe sense he actually hit his dog instead. When Sam hit Joe’s dog it made Joe become very emotionally distressed, which is the tort of infliction of emotional distress. Joe committed assault and battery when he broke Sam’s nose. Since Sam hit his dog, he could say that he was protecting his family. There are probably a few juries that allow protecting your pet a family...

Words: 569 - Pages: 3

Premium Essay

Bus Law

...Business Law II Case Brief Citation In re Estate of Piper Missouri Court of Appeals (1984) 676 S.W.2d 897 FACTS: Gladys Piper died without a will. For several years before Piper’s death, Clara Kauffman had taken Piper to the doctor, beauty salon, and the grocery store; written her checks to pay her bills; and helped her care for her home. At the time Piper had passed, she had $206.75 in cash, and the “Andy Piper” diamond rings in her purse. She also owned personal property amounting to $5,150, consisting of household goods, two old automobiles, farm machinery, and other “miscellaneous” items. According to Kauffman, Piper had promised to pay her for these services and that Piper had intended the “Andy Piper” diamond rings to be a gift to her. Kauffman filed a claim against Piper’s estate for $4,800, but the trial court denied her request as they believed the services that Kauffman provided to Piper were voluntary. Wanda Brown, Piper’s niece, claimed the rings in the purse to preserve them for the estate. Kauffman then filed a petition for delivery of the rings, in which the court granted approval. Piper’s heirs appealed. ISSUE: Whether the donor relinquished complete control and dominion over property before the gift can be effectively delivered? Should Clara Kauffman be given Gladys Piper’s diamond rings? DECISION: The judgment of the trial court was reversed. There was no effective gift of the rings made. Piper had never delivered the rings to Kauffman. ...

Words: 400 - Pages: 2

Premium Essay

Bus Law

...Cynthia and her family’s right of privacy were not violated. Posting the Ode on myspace.com meant that she completely publicized her opinions. She not only made her article available to any persons on line, but she also voluntarily gave up her right of privacy through opening it to the publics. In addition, although she did not disclose her full name on the Ode, persons could easily recognize her through her MySpace page including her profile and photo. Therefore, Campbell’s action did not violate their right of privacy, but just utilized Cynthia’s article which was completely publicized. The bank does not have to be held liable for this case. Reasonably, the bank is not able to handle with all of sudden and intentional criminal acts of the assailants because there are a number of ATMs, and it is impossible to supervise them for 24hours and 7days. This case could not be prevented or deterred by the exercise of reasonable care by the Bank, so the bank does not have any liability toward this case. Basically, due to the negligent way, this accident took place. This clue clearly suggested that Barberton Glass Company had a complete liability for his damage and accident on the highway. Even though he did not have any physical injury, there was high probability of suffering from emotional damages under the dangerous circumstance. Because emotional shocks and damages could badly affect an individual’s life, the company should actively compensate him for their negligent fault...

Words: 252 - Pages: 2

Premium Essay

Bus Law

... Weekly Reflection Due to the depth in American law, the law has been broken down into various categories based on classifications related to specific legal functions. It is essential that individuals and businesses alike understand the differences of law in order to develop legal insight, apply legal theories, and recognize the significance and opportunities that stem from having legal awareness. With this in mind our reflection will briefly discuss the differences between several categories of law, provide examples of each law, discuss what U.S. Constitution amendments were implemented to protect the rights of businesses, and conclude with topics that were comfortable, difficult, and topics that relate to our current fields. Categories of Law Substantive law provides individuals with rights and creates certain duties such as, civil rights, responsibilities in civil law, and crimes and punishments. Procedural law on the other hand sets the rules for pursuing substantive rights and provides the structure that is needed. Criminal law is in place to protect society by penalizing violators with either imprisonment or fines. Civil law is designed to compensate individuals and businesses for damages as a result of another person's conduct. Although Common law has not been passed by legislature, it is solely based on previous cases with similar facts and fundamentals. Statutory law on the other hand is established by legislature and is either disapproved...

Words: 845 - Pages: 4

Premium Essay

Bus Law

...Print Property: Personal, Intellectual, and Real Learning Objectives 11 After studying this chapter, you will be able to: 1. Distinguish between personal, intellectual, and real property. 2. Explain how personal property is acquired. 3. Discuss the definition and significance of bailments. 4. Define different types of tenancies in real property. 5. Discuss the concept of eminent domain. Ryan McVay/Photodisc/Thinkstock The concept of property and ownership is one that has long been important in both society in general and law in particular. English philosopher and political theorist John Locke saw it as "the reason why men enter into society," and Walter Lippmann, the American journalist, described it as "the only dependable foundation of personal liberty." Some have gone so far as to say that the main reason for law is to protect property rights. Even if one does not subscribe to such a narrow purpose, there is no doubt that the law is much concerned with property and rights of ownership. Property can be defined as the right of an individual to exclusively possess, use, and dispose of anything that is capable of being owned. Broadly speaking, property can be divided into three separate types: personal property, intellectual property, and real property. Personal property is characterized by its portable nature; it can be carried from place to place. Furthermore, personal property can be either tangible or intangible. Tangible personal property encompasses ownership...

Words: 21517 - Pages: 87

Premium Essay

Bus Law Essay

...Uncertainties Surrounding Implied Contract Business Law Prof: Aliya Ramji Kuldip Manak Student ID: 50023432 March 27, 2014 Word Count: 500 The legal issue that arises when advising for Martha in this scenario is whether she entered into an enforceable contract or was this merely a gratuitous promise made by Bob. In order for there to be a legally binding contract three requirements must be met, there must be an agreement, an intention to create legal relations and consideration. In order for there to be an agreement there needs to be an offer made by one party with is accepted by the other by promise or performance. There was presumably an offer made by Bob to pay the $1000 which Martha had accepted. In commercial agreements (made in the course of business) the presumption lies that there is an intention to create a contract which is not the case in social agreements. It is debatable whether this was an intention to create a contractual obligation, as although the two had met at the TBREA networking event, Martha’s recommendation to Raj were made personally. Most importantly there was no consideration given in this scenario to complete the terms of a contract. The three rules of consideration are, consideration must not be ‘past’, consideration must be sufficient and it must move from the promisee. As Martha had made the referral which was accepted by Bob before the promise of payment was made, the promise came after the performance the consideration was in the...

Words: 655 - Pages: 3

Premium Essay

Bus Law 1

...Sole Proprietorship Advantages to a sole proprietorship is that the owner has total control and the simplicity of formation for the corporation. With a sole proprietorship, the proprietor is the only owner of the company and runs the whole company. As far as formation is concerned, the government doesn’t require anything from the proprietor in order to create and start their sole proprietorship. There are filings which do need to be completed, but they are not required by the government. The taxation of a sole proprietorship is simple and straightforward. The profits of the company are considered the personal income of the proprietor. However, the proprietor may lose out on certain benefits associated with being taxed as a business. While a sole proprietorship, in some states, can be owned by more than one person, Betty and Betsy will need to aware of their actions so that the IRS and the state do not have a reason to imply a partnership, or other business form, due to their actions of holding themselves out as anything other than independent. (Unif. Partnership Act §202(c)(3). Should this occur, Betty and Betsy could be subject to business and tax requirements they had not anticipated. The disadvantages of a sole proprietorship are unlimited liability to the owner for the business debts and obligations (no liability shield), the difficulty in raising capital and very low liquidity in ownership of the business (if you sell a percentage of the company the business...

Words: 894 - Pages: 4

Premium Essay

Bus. Law Week 1

...Business Law 7/13/2014 Week 1 Professor McGovern Common Law is The ancient law of England based upon societal customs and recognized and enforced by the judgments and decrees of the courts. The general body of statutes and case law that governed England and the American colonies prior to the American Revolution. The principles and rules of action, embodied in case law rather than legislative enactments, applicable to the government and protection of persons and property that derive their authority from the community customs and traditions that evolved over the centuries as interpreted by judicial tribunals. Common-law courts base their decisions on prior judicial pronouncements rather than on legislative enactments. Where a statute governs the dispute, judicial interpretation of that statute determines how the law applies. Common-law judges rely on their predecessors' decisions of actual controversies, rather than on abstract codes or texts, to guide them in applying the law. Common-law judges find the grounds for their decisions in law reports, which contain decisions of past controversies. Under the doctrine of Stare Decisis, common-law judges are obliged to adhere to previously decided cases, or precedents, where the facts are substantially the same. A court's decision is binding authority for similar cases decided by the same court or by lower courts within the same jurisdiction. The decision is not binding on courts of higher rank within that jurisdiction or in...

Words: 661 - Pages: 3

Premium Essay

Bus Law State of Confusion

...State of Confusion Paper State of Confusion Paper The state of Confusion has over stepped its authority when it passed a law regulating trailer hitches on its roads. This regulation is in direct conflict with the commerce clause of the U.S. Constitution, Article 1 Section 8. This gives Tanya only one option in choosing a court to fight the unjust regulation. She must take her case to the federal court. This gives Tanya the best chance at overturning the state of Confusion’s regulation on trailer hitches. The Supremacy Clause also gives Tanya a chance to fight the states regulations. The supremacy clause states that all state judges must follow federal law when federal and state laws conflict. Using both of these clauses to fight the state of confusions’ regulations, Tanya has enough ammunition. The Federal District Court system will have jurisdiction over all matters arising under the Constitution, laws, or treaties of the United States. Regulations can be tricky when deciding constitutionality in the federal court system. Taxations are generally accepted when passed by state legislators. Under the Constitution, regulations that impact interstate commerce and pose a direct burden are deemed impermissible. Tanya can sue in the federal courts in the state of confusion for a declaratory judgment that the states regulations violate the commerce clause and are invalid because of the undue burden on interstate commerce the regulations impose. There are a few cases that the district...

Words: 1209 - Pages: 5

Free Essay

Bus 415 Business Entities, Laws, and Regulations Paper

...Business Entities, Laws, and Regulations Paper BUS/415 Professional practice Tara and Akiva have just got their licenses in obstetrics and are looking to open a professional practice. They will be a new company and will have to be a member managed LLC. This will protect them from being liable if there are any accidents in the future. Since their business has to do with medicine, they are going to need particular protection from liability issues that might come up. For example, one consequence of any problems could be a threat to the health of mother and child, and not following correct procedures could cause accidents, and then lawsuits. They have licenses which are based on their knowledge of the legal and illegal practices. They are going to have to train all of their employees to make sure they know the proper practices as to not injure any of their patients. If the business is ethical and morally sound, and also follows all of the medical laws, they will get a lot of mothers as patients. Restaurant/Bar Miriam, an investor with a lot of money, but very little time on her hands, will finance a restaurant/bar that Lou and Jose will open. The owners of this company are Lou, Jose, and Miriam. The bar should be run in a limited partnership. According to Cheeseman, H.R. “A partnership has to file an information return with the government, telling the government the amount of income earned or losses incurred by the partnership...

Words: 1041 - Pages: 5

Premium Essay

Bus Law

...| | Abstract: Section 2(h) of the Act defines the term contract as "any agreement enforceable by law". To form a contract there must be free consent of all the parties, and undue influence, as defined in section 16, Contract Act 1872 puts a obvious obstacle in making the consent free. The kernel of undue influence basically lies in the relationship of the parties. According to the law a contract becomes voidable when it gets in touch with undue influence. Any such contract may be set aside either absolutely, or if the party who was entitled to avoid it has received any benefit there under, upon such terms and conditions as the Court may seem, just (Sec 19 A). Keyword Introduction What is Contract? Section 2(h) of the Act defines the term contract as "any agreement enforceable by law". There are two essentials of this act, agreement and enforceability. Section 2(e) defines agreement as "every promise and every set of promises, forming the consideration for each other." Again Section 2(b) defines promise in these words: "when the person to whom the proposal is made signifies his assent there to, the proposal is said to be accepted. Proposal when accepted becomes a promise." What is free consent? According...

Words: 3151 - Pages: 13

Free Essay

Bus Law

...Part 1 : The Metamorphosis Narrator: When Gregor Samsa woke up one morning from unsettling dreams, he found himself changed in his bed into a monstrous vermin. He was lying on his back as hard as armor plate, and when he lifter his head a little, he saw his vaulted brown belly, sectioned by arch-shaped ribs, to whose dome the cover, about to slide off completely, could barely cling. His many legs, pitifully thin compared with the size of the rest of him, were waving helplessly before his eyes. Gregor: What’s happened to me? [Gregor looks around room, confused and scared] [Gregor then look straight out window and begins to squint] Gregor: how about going back to sleep for a few minutes and forgetting all this nonsense [Gregor tries to move but cannot] Gregor: Oh god, what a grueling job I’ve picked. Day in, day out-on the road. The upset of doing business is much worse than the actual business in the home office, and besides, I’ve got the torture of traveling, worrying about challenging trains, eating miserable food at all hours, constantly seeing new faces, no relationships that last or get more intimate. To the devil with it all! This getting up so early, makes anyone a complete idiot. Human beings have to have their sleep. Other traveling salesmen live like harem women Narrator: He looked over at the alarm clock, which was ticking on the chest of drawers Gregor: God Almighty! Narrator: It was six-thirty, actually past the half hour, nearly a quarter...

Words: 762 - Pages: 4

Premium Essay

Bus Law

...Ethics and Compliance Paper The Walt Disney Company was founded in 1923. It has been the mission for Disney and its affiliated companies to produce unparalleled entertainment experiences based on the rich legacy of quality creative content and exceptional storytelling (The Walt Disney Company, 2010). For over eight decades the name Walt Disney has successfully entertained families to the extent the family’s desire more from the organization (The Walt Disney Company, 2010). Walt Disney started in a small cartoon studio in the 1920s and has grown to become a global corporation providing quality entertainment for all family members in the United States, and around the world. Within this paper one will find information about the ethical behavior practices and processes Disney uses to comply with SEC (Securities and Exchange Commission) regulations. Additionally this document will cover the overall ethics and business standards of Disney. Additionally, the financial performance over the past two years will be covered.. Calculations will show the ratios for current, debt, return on equity, and day’s receivable. The trend for each ratio and what it tells us about the organization’s financial health will be revealed as well. Ethical Behavior Practices The Walt Disney Company prides itself on being the best when concerned with business standards and practices. The company requires all employees to attend business standards and ethics training. Prior to the training, all new Disney...

Words: 305 - Pages: 2

Premium Essay

Bus Law

...CyberText Consulting, technical writing and online documentation specialists, provides a sample contract on their Web site. Anyone interested in working for the company will need to agree to the contract terms and conditions outlined there. Read through the sample contract and then answer Questions 1–4. Visit URL: Contract Sample http://www.cybertext.com.au/contract_sample.pdf Questions and Answers Answer the following questions in the fields below. Question 1: Why do you think this contract spends so much space defining the certain subjects, such as “cybertext”, “technical writer”, and “third party”? Question 2: What obligations did the contract impose on each party? Question 3: Based on your knowledge of contract law, does this agreement meet all of the requirements for a valid contract? Why or why not? Question 4: Under what conditions might the employer terminate the contract with the independent contractors. Generally, do the terms of the contract seem fair? Practical Internet Exercise 9-2:  Management Perspective—Covenants Not to Compete Instructions: Employers frequently have their employees sign covenants not to compete in which the employees agree to not compete against their employers following the termination of their employment. What if you wish to leave your job and either work for a competitor or start up a competing business? Will the...

Words: 649 - Pages: 3

Free Essay

Bus 378 International Commercial Law and International Business Transactions

...International Commercial Law and International Business Transactions Bristan Keller BUS 378 International Business Law Ashford University Instructor Jumper May 5, 2014 International Commercial Law and International Business Transactions In recent years, various conflicts of law have been identified regarding commercial law and international business transactions. In most cases, there are procedures to follow when a conflict of law comes into play. In others, much is open to interpretation and can be argued in favor of all parties. Normally if this happens, mediation is sought after and all parties compromise upon agreeable terms. Though there are various issues, international commercial law affects international business transactions and strategies through combining common law, international policies, and international organizations. In 2001 the Brussels Convention of 1968 was replaced with the Brussels I Regulation. This has been the topic of many debates as it governs cross-border disputes in civil matter and commercial matters in the European Union (EU). The Brussels I Regulation establishes rules regarding international jurisdictions of courts in addition to enforcing foreign judgments. The regulation was revised in 2007 and publicized in the Heidelberg Report. “It became apparent that the question of possible inclusion of arbitration in the scope of the Regulation would be a controversial question during the revision process.” (Hauberg, 2014) Theoretically...

Words: 2879 - Pages: 12