Fact Pattern 22-1
Naida Baronowski is an American fashion designer who has a design firm in Chicago. Naida has been successful in the U.S. and wants to expand her operation overseas. She hopes to open shops in Paris, Milan, Madrid, Rome, Vienna, and Moscow in the next several years.
Naida is unfamiliar with foreign operations. She comes to you, her attorney, for advice about how she should pursue her goal of becoming an international fashion company.
-Refer to Fact Pattern 22-1. Naida signs an agreement with an Italian firm stating that it will manufacture some clothing, and that Naida will sell it in shops she establishes in various Italian cities. Such an arrangement is best described as:

Question

Quizplus · Accepted Answer

The arrangement described is a joint venture, as Naida is partnering with an Italian firm to manufacture and sell clothing in Italy. A franchise involves giving someone else the right to use your brand name and business model in exchange for a fee, while a licensing agreement involves giving another company the right to use your intellectual property in exchange for royalties. A wholly owned subsidiary and a corporation involve setting up a separate legal entity for the foreign operation.

Fact Pattern 22-1 Naida Baronowski Is an American Fashion Designer Who Has a Who