FRANCE: French restrictive interpretation of commercial agent qualification. A recent decision of the EU Court of Justice.

Consequently, when the agent must strictly apply prices/discounts and conditions of sales/purchase/service fixed by the principal or when the agent is assigned to contact and search prospects or commercial leads (French Supreme Court, commercial section, 3 Oct. 2000, no 97-19999; 6 March 2001; 20 January 2015, no 13-24231; Versailles Appeals Court, 23 April 2020, no 18/08750), […]

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CHINA: Comments on recent Appeal Decision regarding burden of proof on calculation of franchise royalties.

In a recent decision on Dalian Hongcheng Catering Management Co., Ltd. vs Li Cheng (Franchisee) (in Chinese, 大连弘程餐饮管理有限公司 诉 李成)[1], the intermediate court of Dalian city upheld the franchisor’s claim on the amount of royalties that were payable by the franchisee based on the reason that the franchisee failed to provide its monthly gross revenue […]

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COLOMBIA: Commercial agency and distribution contracts may coexist between the same parties and involving the same products or services.

According to the Supreme Court of Justice, the differentiating element between a commercial agent and a distributor is that the first performs a mandate in an independent and stable manner in an established territory as a representative or agent of a local or foreign business for one or more of its products. This means that, […]

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Online platforms in the EU: New rules and impact on manufacturers and franchisors.

Although there is not a clear and generally shared definition of online platforms, it is commonly considered that they include a wide range of entities, such as: online marketplaces, social media, app stores, price comparison websites, platforms for the collaborative economy, food-delivery platforms as well as search engines.  Pursuant to the European Commission’s Communication on […]

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POLAND: Truck dealers in Poland are investigated by the Polish Office of Competition and Consumer Protection.

The companies are supspected of sharing the market. Prohibited actions are indicated by evidence obtained among others during searches at business premises. It is not the first intervention connected with a possible collusion of truck dealers undertaken by the President of the UOKiK; there are other proceedings against five truck dealers already pending. UOKiK learned […]

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SPAIN: Non-exclusive verbal distribution contract: Unilateral resolution without notice or goodwill indemnity. Repurchase of stocks.

From 2007 to 2017 the distributor MARCOM MEDIA S.L was dedicated to selling products of the manufacturer’s brand WELCH ALLYN INTERNATIONAL VENTURES INC. BRANCH IN SPAIN in the Murcia region. The Court classified the contract as distribution, even if it was verbal, given that there was its main characteristic, namely, the purchase with resale of […]

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COLOMBIA: The effects of the Covid19 Pandemic on distribution and commercial agency contracts in Colombia.

Nonetheless, there are circumstances that may arise in the future which legitimately prevent one or both parties from being able to comply with their contractual obligations without having to provide redress to the other party (exonerating circumstances), or which allow the parties to renegotiate the initial terms of the contract.  In this article we will […]

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SPAIN: Comments on the judgement of the High Justice Court of Madrid rendered on 13 December 2018. The concept of “public policy” as a ground to anull arbitral awards and reject a withdrawal of the anullment proceeding.

In this context, the Judgment rendered on 13th of December of 2018 by the Hight Justice Court of Madrid annulled partially an arbitral award in a dispute arose between a Argentinian franchisee and a Spanish franchisor in relation to the breach of a pots-term non-competition covenant in a franchise. The agreement was submitted to Spanish […]

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DENMARK: Commercial agent did not breach commercial agency agreement by refusing to sign SOP.

The parties(1) had entered into a commercial agency agreement in 2010. Approximately 2½ years later, the principal sent a Standard Operating Procedure (SOP) for the agent to sign. The SOP contained terms limiting the commercial agent’s rights to inform and answer questions from customers. The agent refused to sign the SOP. In consequence, the principal […]

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Follow-up: Q&A on COVID-19 and international contracts

In addition to the new contributions, you will find updates for Italy, Poland and Slovenia. The Q&A Paper is also available in the special reports section (https://www.idiproject.com/documents/reports?country=Italy) and will be constantly updated, also with the addition of the contributions for further countries. Q&A on COVID-19   Silvia Bortolotti, IDI Secretary General […]

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COVID – 19 and Competition law.

The ongoing Corona crisis poses a number of problems and businesses are facing particular challenges including problems in distribution, or more generally in international trade, in all countries. The pandemic situation frequently affects the supply relationships between suppliers and customers. This leads to cooperation between companies and also to some unilateral actions that are particularly […]

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The new ICC Force Majeure Clause

In the context of international contracts unforeseen events may occur (or actually occur) which make the fulfilment of contractual obligation impossible or impracticable. In presence of these force majeure situations the party affected by the impediment is relieved from performance and will consequently not be exposed to the consequences of its non-performance, such as penalties, […]

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Germany: The impact of the Act to mitigate the consequences of the COVID-19-Pandemic on franchise systems.

The Act accompanies measures already adopted in the areas of financing, labour law and tax law. Fundamental principles of civil, insolvency and corporate laws will be temporarily suspended or modified.   In addition to a large number of other changes, the following topics should be highlighted, which may have consequences for franchisors, franchisees and franchise […]

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