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SPAIN: The abolition of the Spanish franchisors’ registry.

SPAIN, 14 January 2019
Law 7/1996, regarding ordinance of retail trade, regulated for the first time the franchise activity in Spain through a single article, 62, whose point 2 provided that the physical or legal persons who intend to develop in Spain the franchising activity should be registered, if so, in the Registry that will be established by the correspondent public administrations.

EU: The activity performed by commercial agents under the EC Directive 653/86: a recent judgement of the Court of Justice (Zako c. Sanidel, 21/11/2018).

EU, 14 January 2019
The European Court of Justice, on November 21, 2018, issued a decision (in the case C-452/17) concerning the definition of commercial agent, as per Article 1 of the EC Directive 86/653, with respect to the performance of the activity on an “itinerant manner” and to the performance of further activities other than the negotiation (and conclusion) of the sale or purchase of products for the...

USA: District of Columbia Circuit Court upholds NLRB’s Browning-Ferris case. Indirect and reserved control over employment terms is evidence of joint...

U.S.A., 14 January 2019
In August, 2015 the National Labor Relations Board (NLRB) sent shockwaves throughout the U.S. franchising community when the Board’s majority in its Browning-Ferris opinion concluded that a company that possessed even an unexercised right to assert indirect control over an employee’s essential terms of employment could be a joint employer with the direct employer.

INDIA: Changes to Indian Law on specific relief.

INDIA, 14 January 2019
The Specific Relief (Amendment) Act, 2018 (“Act”) has been passed by both houses of the Parliament of India and subsequently received Presidential assent.

KUWAIT: Court of Cassation sets a precedential legal principle - Commercial Agents and Principals should be aware.

KUWAIT, 17 December 2018
The Claimant is a well-known electronics company (LG), filed a claim against the Ministry of Finance (Tax Department) (the Defendant), requesting the court to rescind an administrative decision issued by the Tax Department in 22/5/2006 to pay income taxes for the period of 2000 to 2004 , stating that LG is conducting commercial activities in Kuwait throughout its local commercial agent in...

CANADA: Fyfe v. Vardy (c.o.b. Dial-a-Bottle).

CANADA, 17 December 2018
In this recent summary judgment decision of the Ontario Superior Court, the defendants had granted certain rights to the plaintiffs to operate a “dial-a-bottle” business opportunity in a particular city.

SPAIN: Agents - Return of commissions already received and alternative drafting of the agreement.

SPAIN, 17 December 2018
The Court of Appeal of Barcelona has issued a judgment (406/2018 of September 20, rec. 354/2018 ECLI: ES:APB:2018:8348) voiding the clause foreseeing the return of a commission received by the Agent when the contract with the client ended.

UK: Agent for supply of downloaded software not protected by UK Regulations.

UK, 19 November 2018
The English Court of Appeal has decided in Computer Associates v The Software Incubator that an agent who represents a principal supplying software by electronic download only is not a commercial agent within the meaning of the UK regulations implementing the European directive on commercial agents.

SPAIN: a recent case law on goodwill indemnity in agency agreement.

SPAIN, 19 November 2018
Clientele remaining with the Principal; advertising by the Principal and prestigious brand: reduction on the maximum compensation.