Mickey’s Muscles enters into a franchise agreement with Planet Fitness that provides for termination at any time for "cause." Mickey's chooses a pricing structure for memberships that the home office disagrees with. Is this "cause" for termination? Explain. If a franchise is terminated, what is the procedure that must be followed?
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Mickey’s Muscles enters into a franchise agreement with Planet Fitness that provides for termination at any time for "cause." Mickey's chooses a pricing structure for memberships that the home office disagrees with. Is this "cause" for termination? Explain. If a franchise is terminated, what is the procedure that must be followed?
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- Zach had surgery, which was his third claim of the year. He had a bill of $5000.Considering the prior visits, what is Zach’s portion of this bill and what is theresponsibility of the insurance carrier?The Federal Trade Commission (FTC) files suit against Yange Corp. under § 2 of the Sherman Act. To be successful, the FTC must prove that Yange Corp. possesses monopoly power in the relevant market and that the monopoly power was obtained by illegal means. The FTC has no direct evidence that Yange is using its power to control prices and restrict output. The FTC, therefore, must show that Yange Corp. has monopoly power indirectly, by showing that Yange Corp. has a dominant share of the relevant market and that there are significant barriers for new competitors entering that market. The FTC can calculate the market share that Yange Corp. has by: showing the total sales that Yange Corp. has ever had. × showing the net revenue that Yange Corp. had during their year of highest profits. looking at the company's sales compared against the total sales of the industry within a specific period. taking the total sales of the industry over one year, and comparing against industry sales over prior…Wiener Haus #82 has been underperforming for a few years. The franchisee (owner of Haus #82) is frustrated and files a claim against the franchisor for breach. The franchisee claims that the agreement he signed contained a statement at the start of the agreement detailing that the business model the franchisor developed was "proven effective and profitable." On these facts, does the franchisee have a winning breach of contract claim against the franchisor? O No, the contract formed was a voidable contract. Thus, the franchisor is void of responsibility if the business model does not produce profit for the franchisee. O Yes, the franchisee relied on these statements when deciding to contract and thus the franchisor should be responsible when the business model fails to work for the franchisee. O No, courts have generally held that the type of language relied upon by the franchisee is "prefatory" and does not create a duty on the part of the franchisor. O Yes, the money paid to the…
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- A computer manufacturer terminating an electronic store retailer's contract to sell the manufacturer's computers because the electronic store sold the manufacturer's computers at a price which the manufacturer deemed too low is: a per se violation of the Sherman Act. resale price maintenance subject to a rule of reason review. price fixing. none of the above.How do nonresidential and residential transactions compare with respect to the duties and disclosures of three authorized relationships discussed in the Brokerage Relationship Disclosure Act? The licensee duties in the relationships are the same for both types of transactions, but the disclosure requirements apply only to nonresidential transactions. The duties in the relationships are the same for both types of transactions, but the disclosure requirements apply only to residential transactions. Licensee duties and disclosure requirements apply only to nonresidential transactions. Licensee duties and disclosure requirements apply only to residential transactions.Lizard Lick Corporation requires all distributors of its lizard salt lick products to sell the products at specified minimum prices. This resale price maintenance agreement is not subject to antitrust law as it deals with products for animal life and the antitrust laws were implemented to protect people only. a violation of the Clayton Act. a per se violation of the Sherman Act. subject to evaluation under the rule of reason. just plain wrong and illegal on for numerous reasons.