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motikmotik
3 years ago
10

C.B. Management, Inc., had a franchise agreement with McDonald’s Corp., to operate McDonald’s restaurants in Cleveland, Ohio. Th

e agreement required C.B. to make monthly payments of certain percentages of the gross sales to McDonald’s. If any payment was more than thirty days late, McDonald’s had the right to terminate the franchise. The agreement also stated that even if McDonald’s accepted a late payment, that would not "constitute a waiver of any subsequent breach." McDonald’s sometimes accepted C.B.’s late payments, but when C.B. defaulted on the payments in July 2010, McDonald’s gave notice of thirty days to comply or surrender possession of the restaurants. C.B. missed the deadline. McDonald’s demanded that C.B. vacate the restaurants, but C.B. refused. McDonald’s alleged that C.B. had violated the franchise agreement. C.B. claimed that McDonald’s had breached the implied covenant of good faith and fair dealing. Which party should prevail, and why?Who is the franchisor? (Answer choices: McDonald’s or C.B. Management, Inc.)
Who is the franchisee? (Answer choices: McDonald’s or C.B. Management, Inc.)
In a franchise relationship, the ______ (Answer choices: franchisee or franchisor) is economically dependent on ______ (Answer choices: franchisee or franchisor) business system.
The franchise relationship is defined by the ____ (Answer choices: contract, agency, or friendship) between the franchisor and the franchisee.
Did C.B. Management, Inc.’s failure to make a payment due more than thirty days earlier constitute a breach of the franchise contract?
(Yes or no?)
Why?
(Answer choices: A. the contract provided McDonald's could terminate the contract when a payment was more than 30 days late B. the contract provided that McDonald's could terminate the contract, but since they didn't terminate in the past they waived the right to terminate C. the contract provided that McDonald's could terminate the contract, but since they didn't terminate in the past they breached the implied covenant of fair dealing)
Did the contract provide that the acceptance of a late payment waived McDonald's right to terminate for late payments? (Answer choices: yes or no)
What does an implied covenant of good faith and fair dealing require? That the parties act _____ (Answer choices: reasonably or arbitrarily) and in good faith in fulfilling their contractual duties.
Did McDonald's act of accepting late payments in the past transform McDonald's right to terminate into a discretionary decision governed by the standard of good faith and fair dealing in the future?
(Yes or no)
Why? Which one of these reasons is not correct? (Answer choices: A. the terms of the agreement control this issue B. the actions of the parties control this issue C. McDonald's exercised privileges expressly reserved in the agreement)
A court would likely find for _____ (McDonald’s or C.B. Management, Inc.)
Business
1 answer:
statuscvo [17]3 years ago
8 0

Answer:

Who is the franchisor?  McDonald's

Who is the franchisee?  C.B. Management Inc.

In a franchise relationship, the <u>franchisee</u> is economically dependent on the <u>franchisor's</u> business system.

The franchise relationship is defined by the <u>contract</u>.

Did C.B. Management, Inc.’s failure to make a payment due more than thirty days earlier constitute a breach of the franchise contract?  YES

Why?  A) the contract provided McDonald's could terminate the contract when a payment was more than 30 days late.

Did the contract provide that the acceptance of a late payment waived McDonald's right to terminate for late payments? NO

What does an implied covenant of good faith and fair dealing require? That the parties act <u>reasonably</u>.

Did McDonald's act of accepting late payments in the past transform McDonald's right to terminate into a discretionary decision governed by the standard of good faith and fair dealing in the future? NO

Why? Which one of these reasons is not correct? B) the actions of the parties control this issue.

A court would likely find for <u>McDonald’s</u>

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Answer:

The answer is:  $18, 750

Explanation:

The double-declining-balance(DDB) method entails computing depreciation of an asset at an accelerated rate. This method is employed when the asset loses value quickly and is expected to generate more revenue at the earlier stages of its useful life. The depreciation is higher at the beginning and lower close to the end of the asset's useful life. The depreciation is computed as follows:

Depreciation = 2 * straight line depreciation percentage * Book value at the beginning of the period

Machine cost: $75, 000

Residual Value: $5, 000

Estimated Life: 4 years/18, 000 hours

Straight line depreciation percentage : 100/4 = 25%

Depreciation Year 1 on DDB =  2 * 25% * $75, 000

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Depreciation Year 2 on DDB =  2 * 25% * ($75, 000 -$37, 500)

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3 years ago
If a company reports profit margin of 33.1% and investment turnover of 1.20 for one of its investment centers, the return on inv
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If the investment turnover is  1.20 for one of its investment centers, the return on investment must be: 39.72%.

Using this formula

Return on investment = Profit margin ×Investment turnover

Where:

Profit margin=33.1% or 0.331

Investment turnover=1.20

Let plug in the formula

Return on investment = 0.331×1.20

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Return on investment = 39.72%

Inconclusion If the investment turnover is  1.20 for one of its investment centers, the return on investment must be: 39.72%

Learn more about return on investment here: brainly.com/question/23823344

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3 years ago
Stephanie works 40 hours a week at a wage rate of ​$25. ​ This, her total weekly income is ​$1000. On this​ income, she pays tot
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Stephanie's marginal tax rate is 15%.

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The Marginal tax rate is the percentage of income that has to be paid as tax as a result of a change in the income bracket.

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