Fern contracts to buy a franchise from Green Grocery Company. The contract is silent on the issue of territorial rights. Green allows a competing franchise to be established near Fern's store, which suffers a significant loss in profits. This is most likely a violation of

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The contract being silent on territorial rights implies that there is an implied covenant of good faith and fair dealing which require both parties to act in good faith towards each other. Allowing a competing franchise near Fern's store, which caused a significant loss in profits, violates this covenant.

Fern Contracts to Buy a Franchise from Green Grocery Company