Hypothetical Question with Sample Answer Omega Computers, Inc., is a franchisor that grants exclusive physical territories to its franchisees with retail locations, including Pete’s Digital Products. Omega sells more than two hundred of the franchises before establishing an interactive Web site. On the site, a customer can order Omega’s products directly from the franchisor. When Pete’s sets up a Web site through which a customer can also order Omega’s products, Omega and Pete’s fi le suits against each other, alleging that each is in violation of the franchise relationship. To decide this issue, what factors should the court consider? How might these parties have avoided this confl ict? Discuss.

—For a sample answer to Question 26–2, go to Appendix E at the end of this text.