Detailed Instructions: In this task, you will be shown a prompt from a judicial decision and multiple holding statements derived from citations following text in a legal decision. Holdings represent the governing legal rule when the law is applied to a particular set of facts. There are five answer choices for each citing text. The correct answer is the holding statement that corresponds to the citing text. You should write an incorrect option. Even though there exist multiple wrong answers, we only need a single wrong answer. There is a <HOLDING> token in the position of the citing text prompt where the holding statement was extracted.
Problem:to serve a particular area, a telephone company must obtain a certificate of convenience and necessity from the KCC. K.S.A. 66-131. The KCC is vested with discretion in this area to regulate telephone companies in order to maintain a statewide telecommunications system and to provide for efficient and effective service to communities in Kansas. Therefore, any municipal franchisee must still obtain KCC approval to serve its franchised area. The power of a city to grant franchises does not confer upon that city any power to decide whether a telephone company should be granted a certificate of convenience and necessity. See K.S.A. 12-2002 (stating that the Franchise Act does not affect the jurisdiction of the KCC); City of New Strawn v. Kansas Corporation Commission, 5 Kan. App. 2d at 635 (<HOLDING>). That power was specifically vested in the KCC
Holding statements: (A) holding that restrictive covenants in franchise agreements are enforceable to protect the basic product which the franchisor has to sell namely the franchise itself (B) holding that franchisor has an interest in the goodwill its franchise has created (C) holding that the power of a federal court to hear and to determine statelaw claims in nondiversity cases depends upon the presence of at least one substantial federal claim in the lawsuit and the district court has considerable authority whether or not to exercise this power in light of such considerations as judicial economy convenience fairness to litigants and eomity (D) holding that the kcc has the power to deny a certificate of convenience and necessity regardless of whether the city has granted a franchise (E) recognizing that the legislature has the sole power of enacting law
Solution:
holding that restrictive covenants in franchise agreements are enforceable to protect the basic product which the franchisor has to sell namely the franchise itself