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BUS205 MOD 3 CA - Essay Example

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The company remains vibrant in its operations and competitive in comparison to its rivals. The position of this company in the industry it operates in is characterized by enormous contracting between…
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Download file to see previous pages Blank contracts are evident across McDonalds’ operations. They range from supplies, transportation to customer service contracts. A dominant blank contract central to the operations of McDonalds is franchising. McDonalds allows other parties other than its founders to own and run McDonalds restaurants around the world. All McDonalds’ stores are however subject to the regulation and control of the top management and the McDonalds Corporation. This means that deviant practices from those of McDonalds Corporation are not acceptable. Franchising ranges from buying, leasing to co-operating McDonalds stores.
The sale of goods and services is subject to laws that seek to regulate and control the underlying transactions. An essential law to account for is the Uniform Commercial Code (White & Summers 130). This code is basically a law that governs the sale of products and services. The code is made up of different articles, each of which addresses a specific issue prior to transactions that involve sale of goods and services. In the McDonalds context, article 2 of the UCC is evaluated in regard to McDonalds’ blank contract in franchising.
McDonald’s employs three different franchising strategies. These are: conventional franchise, business facilities lease (BFL) and joint venture franchising (Shaw & Lafontaine 1041). The first strategy is a twenty-year lease of the company’s stores. The second one involves a contract where the company sells it stores to potential buyers. Finally, the third strategy is basically the partnership of the corporation and its affiliate parties in a bid to expand and spread McDonalds’ operations.
Article 2 of the UCC provides for the sale of goods only. The article does not provide for any service contracts. The critical aspect of this article is that a good is defined as an item that is identifiable and movable at the time of sale (White & Summers 237). In this regard, some franchising ...Download file to see next pagesRead More
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