Franchises


A franchise is a contract arrangement by which the owner of a trade name, trademark, copyright, or process grants permission to others to use this property in selling goods or services under specified conditions.

The purchaser of a franchise (franchisee) obtains the advantage of offering a well-known or unusual product that may already have wide appeal. The franchisee  also receives the benefit of mass buying and advertising. Typically, the buyer of a franchise may pay a flat fee for the franchise as well as an additional percentage based on sales. The franchisee may also be required to pay a fractional share of the franchisor’s promotional costs and to purchase certain supplies from the franchisor.

Contract and sales laws pertaining to franchises are comparatively new. If the franchise involves the resale of goods or food, both the franchisor and franchisee will usually be liable under a breach of warranty if the food or other merchandize is not wholesome or proper from the consumer’s standpoint. However, tort liability to a third person is usually the responsibility of the franchisee alone. In a case where the franchisee’s truck struck  and negligently injured a pedestrian , the franchisor would normally have no responsibility.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

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Property Disparagement


Although firms may compete in the marketplace, they may not spread false information about the products of other firms. This tort is called trade libel. For example, it is trade libel for one manufacturer of automobile wax to state publicly that a competitor’s wax injures automobile paint if the claim is not true. To prove damages, the plaintiff must show that a third party actually refrained from doing business with the plaintiff because of the false information that was spread by the defendant.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Intellectual Property


The most valuable resource in the modern economy is the human mind. The ideas, concepts, and other symbolic creations of the human mind are referred to as intellectual property. Intellectual property is protected through a number of special laws and public policies including copyright, patent, and trademark laws. These laws rest on two essential premises:

  • The creator, be it a person or an organization, of an idea or invention should be entitled to the benefits that flow from that original creation if it can be proved that the creation came from that person or organization.
  • The right to get special economic advantage from such inventions should not exist forever. At some point, ideas enter the public domain and can be used by others.

In today’s global economy, many temptations can arise for businesses and individuals to use other people’s ideas without permission. Patents, copyrights, and other intellectual property are sometimes infringed, or wrongfully used, by those who see an opportunity for quick profit, a practice known as commercial piracy.

A great deal of pirating occurs in industries such as computer software and hardware, industrial machinery, printing and publishing, and designer clothing. Because some governments do not curb such practices, businesses that create ideas are injured.

In coming decades, many new ideas will be developed and commercially exploited in such fields as bioengineering, computer software, fiber optics, and medicine, to name a few. In a global economy, these forms of intellectual property are economically valuable. A society that is scientifically and artistically creative has a big stake in laws that protect the companies that create new ideas. The employees who work for those companies have an important stake in the fair use of intellectual property, as do customers who license the technology or buy the products. A growing challenge for public policy and international trade negotiations is how to coordinate national laws protecting intellectual property rights.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Delayed Performance


Delayed performance will always justify a claim of damage where it can be shown that loss was occasioned by the delay. Most courts hold, however, that delayed performance will not be a material breach justifying rescission unless performance by a certain date is a condition precedent in the contract. If the late performer has any reasonable excuse for delay, the courts may allow damages but will seldom agree to rescission.

In agreements for the sale of marketable merchandise, however, a contract calling for shipment or other performance within a designated time is generally held to be a condition precedent. The difference between merchandise contracts and other contracts is in the position of the injured parties. A delay of a week in obtaining possession of a new home would not likely be crucial to the average home buyer. But a merchant’s success depends on the prompt delivery of goods to customers. Often advertising and sales programs are scheduled around specific delivery dates. Consequently, a delay in the shipment of merchandise is usually held to be a material breach.

Delay cannot be tolerated indefinitely in any kind of contract, however. After the passage of a reasonable time without performance the courts will permit rescission in almost any kind of contract. What is a reasonable time will vary with the type of agreement and all the surrounding circumstances. If no date is specified in the agreement, the courts interpret this to mean that performance must be done within a reasonable time. When time is of great importance, the contract should always be drafted to read that “time is definitely of the essence in the performance of this contract.”

In a bilateral contract, the injured party cannot regard the other party as being in default until the injured party has offered to perform. In legal circles, this offer by the injured party is called a tender. Depending on the terms of the contract, the tender must be either an offer to pay or an offer to perform a service.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Commitment to Plan


Management commitment to plan is a difficult concept to define and probably the most difficult area to probe. At the same time, it is in many respects the most crucial area. A deep-rooted sense of commitment is why certain management teams are able to overcome all obstacles and still achieve planned results. It is the same ingredient that enables a team to win against tough competition even though their best players are injured or all the breaks in the game go against them.

Without attempting to be a psychologist, there are several things to look for to determine whether this sense of commitment exists. What has been the track record of those submitting the plan? It is a positive sign if they have a history of fulfilling commitments. Conversely, if the group has not met its commitments in the past, it is essential to find out what has changed to make their commitment to the current plan any more meaningful. Is this evidence that individuals understand how a failure to meet their personal or functional commitments would jeoperdize the ability of the whole group to accomplish its plan? Is there any indication that anyone in the group feels that function has overcommitted or that they have been pressured into making commitments that are unrealistic?

 It is unikely that anyone will admit they are not committed to a plan they developed and recommend. But questions directed to each functional area about the certainty or difficulty of achieving their part of the plan help everyone see what musdt be done to successfully implement the plan. Such questioning helps to establish the importance of each individual’s personal commitments not only to the plan but to the rest of the organization. In a sense, it helps to develop a form of peer pressure, which is just as important in the execution of the business plan as it is in other walks of life. No one enjoys being in the position of having let teammates down.

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight