Business Law Question

👉 Discussion Question 1 (answer ½ page of content)

Kubota Tractor Corp. makes farm, industrial, and outdoor equipment. Its franchise contracts allow Kubota to enter into dealership agreements with “others at any location.” Kejzar Motors, Inc., is a Kubota dealer in Nacogdoches, Texas and Jasper, Texas. These two Kejzar stores operate as one dealership with two locations. Kubota granted a dealership to Michael Hammer in Lufkin, Texas, which lies between Kejzar’s two store locations. Kejzar filed a suit in a Texas state court against Kubota. Kejzar asked for an injunction to prevent Kubota from locating a dealership in the same market area. Kejzar argued that the new location would cause it to suffer a significant loss of profits. [Kejzar Motors, Inc. v. Kubota Tractor Corp., 334 S.W.3d 351 (Tex.App.—Tyler 2011)]

Answer these:

Which party in a franchise relationship typically determines the territory served by a franchisee?
Which legal principles come into play in this area?
How do these concepts most likely apply in this case?

👉 Discussion Question 2 (answer ½ page of content)

Patricia Garcia and Bernardo Lucero were in a romantic relationship. While they were seeing each other, Garcia and Lucero acquired an electronics service center, paying $30,000 each. Two years later, they purchased an apartment complex. The property was deeded to Lucero, but neither Garcia nor Lucero made a down payment. The couple considered both properties to be owned ‘50/50,’ and they agreed to share profits, losses, and management rights. When the couple’s romantic relationship ended, Garcia asked a court to declare that she had a partnership with Lucero. In court, Lucero argued that the couple did not have a written partnership agreement. [Garcia v. Lucero, 366 S.W.3d 275 (Tex. App.—El Paso 2012)]

Answer these:

Did they have a partnership? Why or why not?
If you had advised the couple at the beginning of their relationship, describe the suggestions you would have provided about structuring their businesses.

Lecture sources: