Scribd Logo
Upload

Welcome to Scribd!

  • Law of Direct Selling

    Uploaded by

    Gan Ying Jie
    2 views3 pages
    A franchisor may be liable for the acts of its franchisee if an agency relationship exists between them. An agency relationship is formed if the franchisor has control over the franchisee's business operations through actions like profit sharing, employee training methods, facility maintenance rules, termination policies, regular inspections, and price setting. However, the franchisee must be acting within the scope of employment for the franchisor to be liable. Courts require strict proof that the franchisor controlled the physical work of the franchisee to establish an agency relationship.

    Original Description:

    Original Title

    law of direct selling

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    A franchisor may be liable for the acts of its franchisee if an agency relationship exists between them. An agency relationship is formed if the franchisor has control over the franchisee's business operations through actions like profit sharing, employee training methods, facility maintenance rules, termination policies, regular inspections, and price setting. However, the franchisee must be acting within the scope of employment for the franchisor to be liable. Courts require strict proof that the franchisor controlled the physical work of the franchisee to establish an agency relationship.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    2 views3 pages

    Law of Direct Selling

    Uploaded by

    Gan Ying Jie
    A franchisor may be liable for the acts of its franchisee if an agency relationship exists between them. An agency relationship is formed if the franchisor has control over the franchisee's business operations through actions like profit sharing, employee training methods, facility maintenance rules, termination policies, regular inspections, and price setting. However, the franchisee must be acting within the scope of employment for the franchisor to be liable. Courts require strict proof that the franchisor controlled the physical work of the franchisee to establish an agency relationship.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    HPT20203 Business Law/ Undang-undang Perniagaan

    TUTORIAL QUESTIONS

    COURSE : BUSINESS LAW


    COURSE CODE : HPT20203
    TOPIC : FRANCHISE LAW 1

    INSTRUCTIONS TO STUDENTS :
    1. This question paper consists of ONE (1) questions.
    2. Kindly answer all questions.
    3. FIVE (5) Marks will be allocated for this question.

    NAME MATRIC NUMBER


    G SITI NURASIYAH BT ABD GHAFAR H20A1947
    R NURUL IZZAH BT MOHD YUSOFF H20A1945
    O NAZIRAWANI BINTI MOHD ZARIEA H20A1388
    U NOOR ANISSA FARHANA BINTI KAMAL H20A1897
    P NUR FARAH SYAHIDA BT MOHD SUDIRMAN H20A1504
    3 NUR SYUHADA BINTI AHMAD H20A1197
    MAISARAH BT GHZALI H20A1940

    This study source was downloaded by 100000865442382 from CourseHero.com on 02-16-2024 03:02:15 GMT -06:00

    https://www.coursehero.com/file/151787621/TUTORIAL-QUESTIONS-franchise-law-1doc/
    HPT20203 Business Law/ Undang-undang Perniagaan

    QUESTION ONE

    Discuss whether a franchisor liable for the acts of its


    franchisee?
    (5 Marks)

     As a brand owner, the franchisor cannot leave hands, because in

    its implementation it has a responsibility and obligation to provide

    blueprint (implementation guidelines) form of business, hold courses

    improving the quality of business on behalf of the second party, providing

    knowledge of the system marketing and provide additional services to

    defend and

    confirm that the license granted can be run smoothly and successfully

    Whether a franchisor liable for the acts of its

    franchisee?

    Yes, If the franchisee is an agent of the franchisor, the franchisor is liable

    for the actions of the franchisee's employees. However, for the franchisor

    to be liable, the employee's actions must be within the scope of

    employment, in addition to the franchisee being an agent of the

    franchisor.

     When Does an Agency Relationship Form in a Franchise

    Relationship?

    A franchise agreement does not automatically establish an agency

    relationship. Some actions that could indicate an agency relationship

    include:

    This study source was downloaded by 100000865442382 from CourseHero.com on 02-16-2024 03:02:15 GMT -06:00

    https://www.coursehero.com/file/151787621/TUTORIAL-QUESTIONS-franchise-law-1doc/
    HPT20203 Business Law/ Undang-undang Perniagaan

    1)Profit sharing rather than royalty payments

    2) Employee training methods that are consistent;

    3) Building and maintaining the facility in the manner specified by the

    franchisor;

    Strict operational rules;

    4) The ability of the franchisor to terminate the agreement if the rules

    are broken;

    5) The franchisor inspects the facility and its operation on a regular

    basis.

    6) The franchisor sets the prices.

    7) Any actions that deprive the franchisee of independence in business

    operations.

     Some courts have imposed stricter requirements for establishing an

    agency relationship, including control over the physical work, and

    have regarded many of the factors listed above as merely general

    business advice. A lawyer can assist you in determining law in our

    area.

    This study source was downloaded by 100000865442382 from CourseHero.com on 02-16-2024 03:02:15 GMT -06:00

    https://www.coursehero.com/file/151787621/TUTORIAL-QUESTIONS-franchise-law-1doc/
    Powered by TCPDF (www.tcpdf.org)

    You might also like