Which of the following exemplifies a vertical restraint imposed by a franchisor in a contract?
A)A clause prohibiting a franchisee from using the company trademark to support a political candidate.
B)A clause prohibiting a franchisee from announcing special offers during Christmas to attract customers.
C)A clause prohibiting a franchisee from bundling two products of the same company.
D)A clause stating the target sales to be achieved by the company during an accounting year.

Question

Quizplus · Accepted Answer

A clause prohibiting a franchisee from using the company trademark to support a political candidate is a vertical restraint imposed by a franchisor in a contract. This is because it restricts the franchisee's ability to use the franchisor's trademark in a way that the franchisor does not approve of.

Which of the Following Exemplifies a Vertical Restraint Imposed by a Franchisor