Roberto 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.

Question

Quizplus · Accepted Answer

A) Under the implied covenant of good faith and fair dealing, the manufacturer is obligated to use his best efforts to supply the goods even if no such clause appears in the written franchise agreement. 
B) As a franchisee, Roberto has an implied obligation to use his best efforts to promote the sale of the widgets, as it is essential for the success of the franchise. 
C) The UCC does not apply to the franchise agreements. Hence, such an agreement cannot lack consideration under the UCC.

Roberto Obtains an Exclusive Franchise to Sell Widgets for the Acme