Mucho Tacos, Inc, sells franchises. Mucho Tacosimposes on its fran¬chi¬sees standards of operation and personnel training methods. What is the potential pitfall to Mucho Tacosif it exercises too much control over its fran¬chisees?
A provision in a franchise agreement permitting the franchisor to establish and enforce certain quality standards is valid and unquestionable. A franchisor has a legitimate interest in maintaining the quality of its products or services to protect its name and reputation.
But too much control over the operations of its franchisees risks potential liability. For example, under the doctrine of respondeat superior, the exercise of too much control may result in the franchisor's liability for the torts of a franchisee's employees. That is, if the franchisor has a right to control the franchisee's operations and exercises this right to a significant degree, and an employee under this control acts in a tortious or criminal manner that results in an injury to another, the franchisor may be held vicariously liable.
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Which of the following is true for self-service retailing?
A) These retailers carry more shopping goods and services such as credit and merchandise-return privileges. B) This service model is favored by discount stores and customers who want to save money. C) It results in high staffing costs compared to other forms of retailing. D) Salespeople are ready to assist in every phase of the "locate-compare-select" process. E) Customers need more information and assistance than in other forms of retailing.
Imagine that an employee is fired for committing an illegal act. The employer accurately explains the cause for the firing in an e-mail message. The court agrees the content of the e-mail is true; yet, it rules that the employee was libeled
Which longstanding belief would this ruling challenge? A) Written statements about people on behalf of the client are private. B) E-mail is an all-powerful communications vehicle. C) The employer must have acted with actual malice. D) Truth is a defense against libel.