Papapop makes a franchise agreement with a bottling factory to sell its product to the company for bottling and subsequent sale. Over the next several years, Papapop steadily demands a higher percentage of the bottler’s profit from sales. Which of the following is true?

a. Papapop is restricted from demanding a higher profit percentage.
b. Papapop is restricted from demanding a higher profit percentage if such increases are arbitrary.
c. Papapop may demand a higher percentage without restriction.
d. None of the above

Question

16-07-2024
Business

Answered

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Papapop makes a franchise agreement with a bottling factory to sell its product to the company for bottling and subsequent sale. Over the next several years, Papapop steadily demands a higher percentage of the bottler’s profit from sales. Which of the following is true?

a. Papapop is restricted from demanding a higher profit percentage.
b. Papapop is restricted from demanding a higher profit percentage if such increases are arbitrary.
c. Papapop may demand a higher percentage without restriction.
d. None of the above

Sagot :

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