JTH Tax, Inc., doing business as Liberty Tax Service, provides tax preparation and related loan services through

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JTH Tax, Inc., doing business as Liberty Tax Service, provides tax preparation and related loan services through company- owned and franchised stores. Liberty’s agreement with its franchisees reserved the right to control their ads. In operations manuals, Liberty provided step- by- step instructions, directions, and limitations regarding the franchisees’ ads and retained the right to unilaterally modify the steps at any time. The California attorney general filed a suit in a California state court against Liberty, alleging that its franchisees had used misleading or deceptive ads regarding refund anticipation loans and e- refund checks. Can Liberty be held liable? Discuss.

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Business Law Text and Cases

ISBN: 978-1285185248

13th edition

Authors: Kenneth Clarkson, Roger LeRoy Miller, Frank Cross

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