J.C., Inc., had a franchise agreement with McDonaldàCorporation to operate
McDonaldàrestaurants in Lancaster, Ohio. The agreement required J.C. to make
monthly payments to McDonaldàof certain percentages of the gross sales. If any
payment was more than 30 days late, McDonaldàhad the right to terminate the
franchise. The agreement also stated that even if McDonaldàaccepted a late payment,
that would not ïnstitute a waiver of any subsequent breach.
cDonaldàsometimes
accepted J.C.àlate payments, but when J.C. defaulted on the payments in July 2010,
McDonaldàgave notice of 30 days to comply or surrender possession of the restaurants.
J.C. missed the deadline. McDonaldàdemanded that J.C. vacate the restaurants, but J.C.
refused. McDonaldàfiles a lawsuit alleging that J.C. had violated the franchise
agreement. J.C claimed that McDonaldàhad breached the implied covenant of good faith
and fair dealing. Which party should prevail and why?
The solution will be this way … ?
The first step is to ascertain the Facts of the case ( Facts ):
The second step is to identify a law Issue raised by the facts ( issue):
The third step is to find an accurate statement of the Rule/Law/Statute ( Rule ):
The fourth step is to Apply the rule to the facts ( Application ) :
1 – Identify one element issue
2 – Use one or more legal reasoning methods to compare the element to the facts and determine
whether the element is satisfied
3 – Repeat (1) and (2) for each element
The final step is to determine the Conclusion to the issue (Conclusion):
Please pay attention to the solution instructions, many thanks.

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