Copeland contracted with McDonalds Systems, Inc., for a franchise. Copeland was granted the fast-food outlet franchise for
Question:
Copeland contracted with McDonald’s Systems, Inc., for a franchise. Copeland was granted the fast-food outlet franchise for Omaha. McDonald’s also gave Copeland first refusal rights for any plans to open other franchise outlets in Omaha.
Copeland exercised the right several times, opening several additional outlets. He then sold the franchise to Schupack and assigned to Schupack the right to open new McDonald’s outlets in Omaha. When Schupack tried to exercise the first refusal right, McDonald’s objected, claiming its relationship with Copeland developed through a special confidence in Copeland’s ability to manage and promote its new franchise outlets. Was Mc-Donald’s, correct? Explain. Schupack v. McDonald’s Systems, Inc., 264 N.W.2d 827 (NE).
Step by Step Answer:
Business Law With UCC Applications
ISBN: 9780073524955
13th Edition
Authors: Gordon Brown, Paul Sukys