Doug obtains an exclusive franchise to sell widgets for the Acme Widget Company.The exclusive franchise covers the entire State of Wisconsin for a period of three years.In this case:
A) Acme is obligated to use its best efforts to supply the goods only if this clause appears in the written franchise agreement.
B) according to the UCC,unless otherwise agreed,Doug must use his best efforts to promote the sale of the widgets in his territory.
C) under the UCC,such an agreement lacks consideration.
D) consideration is not required because this is a moral obligation.

Question

Quizplus · Accepted Answer

Under the Uniform Commercial Code (UCC), when a seller grants an exclusive territory to a buyer or franchisee, there is an implied obligation that the buyer or franchisee must use their best efforts to promote and sell the goods in that territory. This ensures that the seller's grant of exclusivity is valuable and that the seller benefits from the arrangement by having their products actively marketed and sold in the exclusive territory.

Doug Obtains an Exclusive Franchise to Sell Widgets for the Acme