Law101 case study

Here is the full question for the case study that you must complete:J.C., Inc., had a franchise agreement with McDonald’s Corporation to operate McDonald’s restaurants in
Lancaster, Ohio. The agreement required J.C. to make monthly payments to McDonald’s of certain
percentages of the gross sales. If any payment was more than 30 days late, McDonald’s had the right to
terminate the franchise. The agreement also stated that even if McDonald’s accepted a late payment,
that would not “constitute a waiver of any subsequent breach.” McDonald’s sometimes accepted J.C.’s
late payments, but when J.C. defaulted on the payments in July 2010, McDonald’s gave notice of 30
days to comply or surrender possession of the restaurants. J.C. missed the deadline. McDonald’s
demanded that J.C. vacate the restaurants, but J.C. refused. McDonald’s files a lawsuit alleging that J.C.
had violated the franchise agreement. J.C claimed that McDonald’s had breached the implied covenant
of good faith and fair dealing. Which party should prevail and why?
With this information, you should now be able to complete the case study as required.