FRANCE: The purchaser of a franchisee’s buisness may not be held liable merely because of a termination of a distribution agreement.

That is particularly the case for large sales outlets because of the limits on commercial facilities imposed by the urban trade rules. Thus, a franchisor seeks, by means of clauses banning reaffiliation and noncompetition clauses, to dissuade the franchisee from being affiliates with a competing network or carring on a similar activity, as well as, […]

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BRAZIL: New Court Decision on franchising.

Franchisor enforced the post contractual noncompetition clause, and claimed not only material damages and the penalty established in the agreement for intellectual property infringement, but also moral damages. The Superior Court kept the Court of Appeals’decision in which the former franchisee was condemned to pay a penalty on daily basis for the intellectual property infringement […]

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NEW ACT FOR THE PROMOTION AND DEFENSE OF THE COMPETITION IN ANDALUSIA (SPAIN)

This new Act, with effects in the region of Andalusia, follows the authorisation of the Spanish Constitution for the different Autonomous Communities to enforce, in their respective territories, the competition rules, provided they do not interfere in the State or the European Union regulations.   The objectives of this new regional Act could be summarised […]

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CHINA: NEW ANTI-MONOPOLY LAW

The table of content of the Law is as follow: Chapter I General Provisions Chapter II Monopoly Agreement Chapter III Abuse of Dominant Market Position Chapter IV Concentration of Business Operators Chapter V Abuse of Administrative Power to Eliminate or Restrict Competition Chapter VI Investigation into Suspicious Monopolistic Conduct Chapter VII Legal Liabilities Chapter VIII […]

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FRANCE: Issues that may arise with the termination of an exclusive distribution agreement.

The company Yves Saint Laurent Parfums had granted a Venezuelan company an exclusive license to distribute its products in Venezuela. Following the licensor’s termination of the license agreement, the licensee accused it of not having taken action against other distributors that were ignoring the exclusive rights granted. In ruling that ‘the supplier is obliged to […]

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The European Community agreed on the final text of a new Lugano Convention.

This new Convention will replace the 1988 Lugano Convention currently in force, mirroring the provisions of EC Regulation 44/2001 on the same matters. The main features of the revised Convention concern the regulation on the court of jurisdiction and the jurisdiction over consumer contracts, but other significative changes, as reported by the Swiss Federal Ministry […]

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NEW SPANISH COMPETITION ACT

Five are the basic principles of this new act: to warranty the legal security of the economic undertakings the independence in the taking of the decisions transparency and liability before the society of the administrative bodies enforcing competition rules efficiency in the fighting against the anticompetitive behaviours, and coherence of the system, particularly at the […]

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IDI WEBSITE:

We are pleased to inform you that the Power Point Presentations of some interventions of the two days conference on ‘Organizing the termination of agency and distributorship agreements. The critical issues’, are now downloadable in the Conference Section of the IDI website.   IDI Editorial Board.   […]

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2005 Hague Convention on Choice of Court Agreements.

In May 2007, the Hague Conference on Private International Law published an article-by-article commentary prepared by the co-reporters Trevor Hartley (United Kingdom) and Masato Dogauchi (Japan) on the Convention adopted in June 2005, that provides an overview of the contents and the aims of the agreement. The generalised adoption of this convention would extend a […]

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FRANCE: An interesting case-law on exclusive distribution agreements.

An exclusive distribution agreement was entered into between a German supplier and French distributors. Complaining of a breach of their contracts, the distributors brought an action against the supplier, seeking damages for the termination of their contracts. Responding to the supplier’s lack of jurisdiction defense, the Cour de Cassation (Cour de Cassation, 1st Civil Chamber, […]

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UE-DENMARK: EC Regulation 44/2001 is now applicable also to Denmark.

On July 1, 2007 the Agreement entered into force (see Press Release IP/07/977 of 29/06/2007 from the European Commission). The purpose of this agreement is to apply the provisions of Regulations 44/2001 and its implementing measures to the relations between Denmark and the other countries of the European Community, in order to achieve a uniform […]

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AUSTRIA: Obligation of the supplier to take back the spare parts when terminating the car-distribution contract.

The claimant, a car distributor of Nissan, claimed the supplier to take back the spare parts for the price charged by Nissan at the time of delivery. Nissan has terminated the contract under the contractual notice period of two years. According to the distribution contract the claimant was obliged to keep an adequate stock. In […]

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NEW CONTENTS: The IDI website is constantly improving its services and contents with the addition of new important features.

Legislation : Among the other new laws we added, we can mention: VIETNAM: The New Commercial Law (effective from January 1, 2006) governing sales by mandate dealers and regulating commercial agency and franchising contracts and Decree No. 35/2006/ND-CP of March 31, 2006 on franchising. MALAYSIA: The new Arbitration Act 2005, repealing the previous legislation. CHINA: […]

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GREECE: A new draft on franchising has been issued in Greece.

The draft is composed of 9 articles that provide definitions of franchising, the field of application of the law, the form and contents of the contract, the pre-contractual conduct obligations of the franchisor, the disclosure obligation and the pre-post-contractual non-competition obligations. A franchising contract is defined as an agreement between two independent legal subjects, through […]

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