The Legal Environment of Business: Text and Cases (MindTap Course List)
The Legal Environment of Business: Text and Cases (MindTap Course List)
10th Edition
ISBN: 9781305967304
Author: Frank B. Cross, Roger LeRoy Miller
Publisher: Cengage Learning
Question
Chapter 16, Problem 3CT
Summary Introduction

Case summary: Construction company BH visited a hotel of company HIF in city T to estimate the cost of renovation of the hotel. Company HIF offered company BH to renovate the hotel which would require ten years to recover the cost. Construction company BH bought the hotel, renovated it and operated it as a hotel HAI. Person GA, who was the executive of HIF decided to franchise to another local hotel. HIF asked major renovations to be done by hotel HAI that spent $3 million on the renovation. HIF refused to renew the franchise. Hotel HAI sold the hotel for $5million and filed a suit against HIF for fraud in Arkansas state court.

To find: The reason for disclosing the franchise plan of company HIF to the construction company BH and hotel HAI.

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Choose the right answer. 2. (The law of Agency) Conflict of interest means ________________. a. Agent is interested in Principal business b. Principal is interested in Agent business c. Agent stands to compete with Principal interest d. Principal stands to compete with Agent interest 3. (Law of Contract) The agreement is _____________ if it is caused by mistake as to any law in force in Malaysia. a. voidable b. void c. valid d. illegal 4. (Law of Contract) Yan wants to borrow RM20,000 from her friend Pang and Pang agrees to lend the money if Yan agrees to pay the money to Cathy, his sister in four installments. The above situation illustrates the principle of __________. a. consideration need not move from the promisee b. part payments are valid consideration c. natural love and affection is valid consideration d. executory consideration is performed after contract is made
BUSINESS LAW 3 - David Ungar holds a Dunkin’ Donut's franchise. The terms of his franchise agreement require him to use only those ingredients furnished by Dunkin’ Donuts. He is also required to buy its napkins, cups, and so on, with the Dunkin’ Donut's trademark on them. Is this an illegal tying arrangement? What if Dunkin’ Donuts maintains that it needs these requirements to maintain its quality levels on a nationwide basis? [Ungar v. Dunkin’ Donuts of America, Inc., 429 U.S    5 - Hines Cosmetic Co. sold beauty preparations nationally to beauty shops at a standard or fixed- price schedule. Some of the shops were also supplied with a free demonstrator and free advertising materials. The shops that were not supplied with them claimed that giving the free services and materials constituted unlawful price discrimination. Hines replied that there was no price discrimination because it charged everyone the same. What it was giving free was merely a promotional campaign that was not…
31 - Which of the following bear only the obligations of being a trader?A) Government official who has established a commercial enterprise although it is prohibited to engage in commercial activitiesB) A pharmacist operating a pharmacy without the permission of the Ministry of Health.C) A 15-year-old person who runs a business on his behalf, even partiallyD) A 25-year-old person who runs a business on his behalf, even partiallyE) A person who acts with third parties in good faith on behalf of a company that does not exist legally
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