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No explanation needed Jonelle Lane owns a Dunkin' Donuts franchise and operates it under her limited liability company, Fresh Taste Donuts LLC. Ms. Lane has

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Jonelle Lane owns a Dunkin' Donuts franchise and operates it under her limited liability company, Fresh Taste Donuts LLC. Ms. Lane has not paid the last 4 months of royalty fees due to Dunkin' Donuts, the franchisor. The franchisor terminates the franchise agreement. Ms. Lane recently received a large shipment of carry out supplies and donut boxes bearing the franchisor's trademark and logo. She does not want to be wasteful and decides to use the supplies until they are gone and then she will sell donuts under the Fresh Taste trademark. Select the best true statement below. 0 a) Because Ms. Lane ordered and paid for the supplies before the franchise agreement was terminated, she has the legal right to use the supplies but may not place an order after the date the franchise agreement was terminated. G) b) The continued use of the franchisor's trademark is trademark infringement, once the franchise agreement is terminated M. Lane no longer has permission to use it. O c) Ms. Lane may continue to use the supplies in an effort not be wasteful and to support Dunkin' Donuts sustainability goals 0 d) Ms. Lane can sue Dunkin' Donuts for breach of contract for terminating the franchise agreement prior to the renewal date. She may continue to use the supplies while awaiting for the lawsuit to conclude. Question 7 (1 point) J Saved I talked about the case Scheck v Burger King, in which Scheck is the franchisee and entered into a franchise agreement with Burger King, the franchisor, to own and operate a Burger King franchise location. Burger King opened another location within a couple miles of Mr. Scheck's location. There was no restriction in the franchise agreement that prevented Burger King from opening a location near the franchisee's location. What did the court conclude? Select the best answer. Q a) Even though the franchise agreement did not address territory, the court found Burger King had violated the implied covenant of good faith and fair dealing present in every commercial contract. O b) Mr. Scheck, the franchisee should have read the franchise agreement more thoroughly before signing it, he is now bound to the terms and has no redress for this encroachment on his territory. O c) The court ruled in favor of Burger King, the franchisor, and concluded Mr. Scheck simply has "buyer's remorse", there is risk in every business transaction. (9 d) The case was dismissed. The contract terms (franchise agreement) clearly did not restrict Burger King from opening a restaurant near Mr. Scheck's location

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