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Given situation:
Person B was not allowed to operate a franchise of Company H&R block as a district manager for the company. He signed the franchisee to his wife person J. The terms in the franchisee agreement includes a covenant not to operate for two-year span within –mile radius if the franchise area should be company H&R franchise be revoked, moved or otherwise disposed of.
Person B and person J both are aware of the terms of the agreement and decided to terminate the agreement.
To discuss: Whether Company should able to seek an injunction against person J and against person R.
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Chapter 13 Solutions
Lms Integrated Mindtap Business Law, 1 Term (6 Months) Printed Access Card For Mann/roberts’ Smith And Roberson’s Business Law, 17th
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- Dennis and Donna Smith owned a 10-acre tract of land that they decided to sell. The couple entered into a listing agreement with Kelly McLaughlin, a licensed real estate broker. The agreement gave Kelly the exclusive right to sell the property for a period of 6 months. The Smiths agreed to pay Kelly a 6% commission of the selling price if a buyer was found during the listing period. Four months later, the Smiths sent Kelly a letter terminating the listing agreement. Kelly did not approve of the conditions. One month later, Kelly presented a full price offer to the Smiths; however, they ignored the offer and sold the property to another buyer. Kelly sued the Smiths for breach of the agency agreement. Which party wins the lawsuit? Did the Smiths act ethically in this case?arrow_forwardPaul Bunyan is the owner of noncumulative 8 percent preferred stock in the Broadview Corporation, which had no earnings or profits in 2012. In 2013, the corporation had large profits and a surplus from which it might properly have declared dividends. The directors refused to do so, however, instead using the surplus to purchase goods necessary for the corporation’s expanding business. The corporation earned a small profit in 2014. The directors at the end of 2014 declared a 10 percent dividend on the common stock and an 8 percent dividend on the preferred stock without paying preferred dividends for 2013. a. Is Bunyan entitled to dividends for 2012? For 2013? b. Is Bunyan entitled to a dividend of 10 percent rather than 8 percent in 2014?arrow_forwardKlinicki and Lundgren, both furloughed Pan Am pilots stationed in West Germany, decided to start their own charter airline company. They formed Berlinair, Inc., a closely held Oregon corporation. Lundgren was president and a director in charge of developing the business. Klinicki was vice president and a director in charge of operations and maintenance. Klinicki, Lundgren, and Lelco, Inc. (Lundgren’s family business), each owned one-third of the stock. Klinicki and Lundgren, as representatives of Berlinair, met with BFR, a consortium of Berlin travel agents, to negotiate a lucrative air transportation contract. When Lundgren learned of the likelihood of actually obtaining the BFR contract, he formed his own solely owned company, Air Berlin Charter Company (ABC). Although he continued to negotiate for the BFR contract, he did so on behalf of ABC, not Berlinair. Eventually BFR awarded the contract to ABC. Klinicki commenced a derivative action on behalf of Berlinair and a suit against…arrow_forward
- Anthony and Karen were partners doing business as the Petite Garment Company. Leroy owned a dye plant that did much of the processing for the company. Anthony and Karen decided to offer Leroy an interest in their company, in consideration for which Leroy would contribute his dye plant to the partnership. Leroy accepted the offer and was duly admitted as a partner. At the time he was admitted as a partner, Leroy did not know that the partnership was on the verge of insolvency. About three months after Leroy was admitted to the partnership, a textile firm obtained a judgment against the partnership in the amount of $50,000. This debt represented an unpaid balance that had existed before Leroy was admitted as a partner.The textile firm brought an action to subject the partnership property, including the dye plant, to the satisfaction of its judgment. The complaint also requested that, in the event the judgment was unsatisfied by sale of the partnership property, Leroy’s home be sold and…arrow_forwardRose, Jean and Dorothy have been trading as a partnership for the last three years. However, their accountant advised them to convert to a limited company in order to reduce their tax liability. Following this advice they incorporated a company, Davies Fashions Ltd, with Rose, Jean and Dorothy as the sole directors and shareholders. They commenced trading as the new company some thirteen months ago. The company manufactures high quality fashion goods for the more mature end of the female market and deliberately targets customers who used to shop at major high street retailers but no longer do so. They pride themselves on the fact that all their products are hand-finished, using local staff, a large proportion of which are family and friends of the directors. The company secretary is Edward, who has responsibility for all compliance issues. He drew up the Memorandum and Articles of Association and registered the company at Companies House, in accordance with all statutory procedures.…arrow_forwardJohnson and Wilson were the principal shareholders in Matthew Corporation, located in the city of Jonesville, Wisconsin. This corporation was engaged in the business of manufacturing paper novelties, which were sold over a wide area in the Midwest. The corporation was also in the business of binding books. Johnson purchased Wilson’s shares of the Matthew Corporation, and in consideration thereof, Wilson agreed that for a period of two years he would not (a) manufacture or sell in Wisconsin any paper novelties of any kind that would compete with those sold by the Matthew Corporation or (b) engage in the bookbinding business in the city of Jonesville. Discuss the validity and effect, if any, of this agreement.arrow_forward
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