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MARCH 2009 BUSINESS LAW CHAPTER 41 DEBRA BARONE ANSWERS TO QUESTIONS AND CASE PROBLEMS 1. A franchisor is held liable to a third person dealing with or affected by the franchisee when the franchisor has control over the operations of the franchisee. The franchisee is then not an independent contractor, but and employee or an agent of the franchisor. 2. The neighbors were not “partners” and their playground was not considered a legal business. So, Meadowbrook Playground can not be sued for damages. Possibly, the neighbors could be sued as individuals ground since they each owned part of the land. 3. The FTC is correct. Just because Friedman did not call the business opportunities franchises, he conducted the sales of them as such. Friedman is in violation. 4. If the vending machines were sold on their own, this would not be the same as a franchise. But the advertisement claims this was a business opportunity. Wolf and King violated this rule and the court found in favor of the FTC. 5.
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This note was uploaded on 04/22/2011 for the course FINANCE BUSINESS L taught by Professor Daviddubois during the Spring '09 term at SUNY Empire State.

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