Question 4

Beck and Co., a German brewer, gave Giannelli Distributing Co. a franchise to distribute Becks beer in California. The franchise agreement specified that it would continue "unless and until terminated at any time upon thirty days' written notice by either party to the other." The agreement contained no additional information relating to termination.Some time thereafter, Beck notified Giannelli that the franchise was terminated. Giannelli claimed that the franchise could only be terminated only upon proof of reasonable cause. He offered evidence of trade usage in the United States, specifically including California, to show that common practice required cause for termination, and further claimed that such usage would be read into the franchise agreement with Beck.Can Beck terminate the franchise agreement?Discuss.