Business Law Today 8th Edition by Roger LeRoy Miller,Gaylord Jentz

تمرين 3

Franchise Termination. C.B. Management Co. operated McDonald's restaurants in Cleveland, Ohio, tinder a franchise agreement with McDonald's Corp. The agreement required C.B. to make monthly payments of, among other things, certain percentages of the gross sales to McDonald's. If any payment was more than thirty days late, McDonald's had the right to terminate the franchise. The agreement stated, "No waiver by [McDonald's] of any breach... shall constitute a waiver of any subsequent breach." McDonald's Sometimes accepted C.B.'s late payments, but when C.B. defaulted on the payments in July 1997, McDonald's gave notice of thirty days to comply or surrender possession of the restaurants. C.B. missed the deadline. McDonald's demanded that C.B. vacate the restaurants. C.B. refused. McDonald's filed a suit in a federal district court against C.B., alleging violations of the franchise agreement. C.B. counterclaimed, alleging, among other things, that McDonald's had breached the implied covenant of good faith and fair dealing. McDonald's filed a motion to dismiss C.B.'s counterclaim. On what did C.B. base its claim? Will the court agree? Why or why not? [McDonald's Corp. v. C.B. Management Co., 13 E.Supp.2d 705 (N.D.I11. 1998)]