Case Study Law 101
:Here is the full question for the case study that you must complete
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

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