Problem:
Omega Computers, Incorporated is a franchisor that grants exclusive physical territories to its franchisees with retail locations, including Pete's Digital Products. Omega sells over two hundred of the franchises before establishing an interactive web site. On the web site, a customer can order Omega's products directly from the franchisor. When Pete's Digital Products sets up a web site through which a customer can also order Omega's products, Omega and Pete's Digital Products file suits against each other, alleging that each is in violation of the franchise relationship.
Required:
Question 1) To decide this issue, what factors should the court consider? How might the parties have avoided this conflict? Discuss fully. Write the solution in detail.