1. H&R Block, Inc. (Block), is a franchisor that licenses franchisees to provide tax preparation services to customers under the "H&R Block"? service mark. June McCart was granted a Block franchise at 900 Main Street, Rochester, New York. For seven years, her husband, Robert, was involved in the operation of a Block franchise in Rensselaer, New York. After that, he assisted June in the operation of her Block franchise. All the McCarts' income during the time in question came from the Block franchises.

The Block franchise agreement that June signed contained a provision whereby she agreed not to compete (1) in the business of tax preparation (2) within 250 miles of the franchise (3) for a period of two years after the termination of the franchise. Robert did not sign the Rochester franchise agreement. Two years later, June wrote a letter to Block, giving notice that she was terminating the franchise. Shortly thereafter, the McCarts sent a letter to people who had been clients of the Rochester Block office, informing them that June was leaving Block and that Robert was opening a tax preparation service in which June would assist him. Block granted a new franchise in Rochester to another franchisee. It sued the McCoarts to enforce the covenant not to compete against them. Who wins and why?4

2.My Pie International, Inc. (My Pie), an Illinois corporation, was a franchisor that licensed franchisees to open pie shops under its trademark name. My Pie licensed thirteen restaurants throughout the country, including one owned by Dowmont, Inc. (Dowmont), n Glen Ellyn, Illinois. The Illinois Franchise Disclosure Act requires a franchisor that desires to issue franchises in the state to register with the state or qualify for an exemption from registration and to make certain disclosures to prospective franchisees. My Pie granted the license to Dowmont without registering with the state of Illinois or qualifying for an exemption from registration and without making the required disclosure to Dowmont. Dowmont operated its restaurant as a My Pie franchise for four years, and after that, it operated under the name "Arnold's." Dowmont paid franchise royalty fees for the four years. My Pie sued Dowmont for breach of the franchise agreement to recover royalties it claimed were due from Dowmont. Dowmont field a counterclaim, seeking to rescind the franchise agreement and recover the royalties it paid to My Pie. Who wins and why?

3.Georgia Girl Fashions, Ic. (Georgia Girl), was a franchisor that licensed franchisees to operate women's retail clothing stores under the "Georgia Girl" trademark. Georgia Girl granted a franchise to a franchisee to operate a store on South Cobb Drive in Smyrna, GA. Georgia Girl did not supervise or control the day-to-day operations of the franchisee. Melanie McMulan entered the store to exchange a blouse that she had previously purchased at the store. When she found nothing that she wished to exchange the blouse for, she began to leave the store. At that time, she was physically restrained and accused of shoplifting the blouse. McMullan was taken to the local jail, where she was held until her claim of prior purchase could be verified. The store then dropped the charges against her and she was released from jail McMullan filed an action against the store owner and Georgia Girl to recover damages for false imprisonment. Is Georgia Girl liable? Why or why not?

4.Ramada Inns, Inc. (Ramada Inns), is a franchisor that licenses franchisees to operate motor hotels using the "Ramada Inns" trademarks and service marks. In August, the Gadsden Motor Company (Gadsden), a partnership, purchased a motel in Attalla, Alabama, and entered into a franchise agreement with Ramada Inns to operate it as a Ramada Inns motor hotel. Five years later, the motel began receiving poor ratings from Ramada Inns inspectors, and Gadsden fell behind on its monthly franchise fee payments. Despite prodding from Ramada Inns, the motel never met the Ramada Inns operational standards again.

One year later, Ramada Inns properly terminated the franchise agreement, citing quality deficiencies and Gadsden's failure to pay past-due franchise fees. The termination notice directed Gadsden to remove any materials or signs identifying the motel as a Ramada. Gadsden continued using Ramada Inn signage, trademarks, and service marks inside and outside the motel. In September, Ramada Inns sued Gadsden for trademark infringement. Who wins and why?