Sasha contracts to buy a franchise from TrustMe Financial Consultants,Inc.The contract is silent on the issue of territorial rights.When TrustMe allows a competing franchise to be established near Sasha's office,she suffers a significant loss in profits.This is most likely a violation of

Question

Quizplus · Accepted Answer

The implied covenant of good faith and fair dealing is an implied term in contracts that imposes a duty on both parties to act in good faith and deal fairly with one another. Sasha had a reasonable expectation that TrustMe would not allow a competing franchise to be established in her territory, and therefore the failure to do so may be seen as a breach of the implied covenant of good faith and fair dealing. While there may be other legal protections against anticompetitive behavior (such as antitrust laws), the contract is silent on territorial rights, and the FTC Franchise Rule may not directly apply in this situation.

Sasha Contracts to Buy a Franchise from TrustMe Financial Consultants,Inc