Given situation: Person B was not allowed to operate a franchise of Company H&R block as a district manager for the company. He signed the franchisee to his wife person J. The terms in the franchisee agreement includes a covenant not to operate for two-year span within –mile radius if the franchise area should be company H&R franchise be revoked, moved or otherwise disposed of. Person B and person J both are aware of the terms of the agreement and decided to terminate the agreement. To discuss: Whether Company should able to seek an injunction against person J and against person R.

Question

Marvie, Kim, Clarence, and Goldie Tschetter purchased units in Huron Kitchen LLC, a limited liability company, which would construct and own a Country Kitchen restaurant in South Dakota. As members of an LLC, they had management powers in proportion to their contributions of capital and could elect the managers of the LLC and set the managers’ responsibilities. As LLC members, the Tschetters agreed to hire Country Hospitality Corporation to do much of the operation of the LLC. The LLC Operating Agreement required that the day-to-day decisions were made by two managers, who were required to be members of the LLC and were selected by the other members. Members could authorize loans on behalf of the company by agreement. The members had the right to receive profits and distributions when warranted. The members could authorize incidental expenses within an aggregate of $12,500. The members were empowered to make any other routine actions incidental to the day-to-day activity of the LLC.…

Answer 1

Question

Chapter 13, Problem 16CP

Summary Introduction

Given situation:

Person B was not allowed to operate a franchise of Company H&R block as a district manager for the company. He signed the franchisee to his wife person J. The terms in the franchisee agreement includes a covenant not to operate for two-year span within –mile radius if the franchise area should be company H&R franchise be revoked, moved or otherwise disposed of.

Person B and person J both are aware of the terms of the agreement and decided to terminate the agreement.

To discuss: Whether Company should able to seek an injunction against person J and against person R.

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