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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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Koch traded Machine 1 for Machine 2 when the fair market value of both machines was $50,000. Koch originally purchased Machine 1
nexus9112 [7]

Answer:

The right answer is $50,000

Explanation:

Simply put, adjusted basis is the cost of an object after factors that affects the cost has being considered. These factors usually include taxes, depreciation value and any other cost incurred in getting and retaining the said object. Adjusted basis is important so as to know the right amount to sell.

Adjusted basis increases when an individual factors the cost incurred from taxes and maintenance ad it reduces when he/she factors in depreciation.

In the case of Koch, he already exchanged his machine for another at $50,000, as far as he is concerned at that moment, the adjusted basis is $50,000 because it was exchanged in a fair market.  

8 0
3 years ago
Check all true statements regarding CMBS:
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Answer: A and D only

Explanation:

CMBS Loan are also referred to as a Conduit Loan, this is a type of real estate loan usually commercial, which is secured by a first-position mortgage on a commercial property. These loans are usually packaged, and sold by a Conduit Lender, commercial banks, investment banks, and syndicates of banks.

Loans in a CMBS are always bigger so they are less in a CMBS deal. Sometimes it’s onlyone loan in a Single Asset (SA) CMBS deal

Prepayments are discouraged in CMBS through defeasance,prepayment penalties or yield maintenance fees.

5 0
3 years ago
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Marigold’s Pest Control Products has the following information available: net income, $15800; cash provided by operations, $2170
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Answer:

The Maigold's free cash flow can be calculated using the below formula:

Cash Provided by Operations-Capital expenditure-Dividends paid

Explanation:

Cash provided by operations   $21700

Capital expenditure                  ($10100)

Dividends paid                          ($3500)

Free cash flow of Maigold's     $8100

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Answer: When you encounter an organization where employees are quite intense, focused, and determined to win, you have encountered an organization with a(n) <u>Mercenary</u> culture.

<u>Explanation:</u>

Mercenary is one who always works for money not for achieving any organizational goal. Mercenary culture is one in which employees have the same thinking. Employees are not friends with each other. It is the culture in which everyone thinks of his benefit. People are more determined to win even if they have to sacrifice their ethics.

So this type of culture is not very successful in the long run. Because everybody works for his or her advantage. For an organization to be successful everyone has to work together keeping in mind the benefit of other employees also.

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