Question

Foster enters into an agreement with Grab n' Eat Burgers, Inc., to operate a franchise in Home Town. Later, Grab n' Eat grants franchises to others within the same territory, causing Foster to suffer a significant loss in profits. In Foster's suit against Grab n' Eat, Foster's best argument is that the franchisor
a. violated the implied covenant of good faith and fair dealing.
b. charged Foster a franchise fee.
c. violated the antitrust laws.
d. granted Foster the first Grab n' Eat franchise in Home Town

Answer 1

Answer:

a.

Explanation:

Based on the information provided within the question it can be said that  Foster's best argument is that the franchiser violated the implied covenant of good faith and fair dealing. This covenant is a presumed agreement that both parties that enter a contract will be honest, fair, and will conduct everything in good faith. Which Grab n' Eat has not done since they purposely granted franchises to others in the same area knowing the negative effect it would have on Foster.