DENMARK: The Danish Commercial Agents Act did not cover combined sales of goods and services.

In November 2018, IDI agency & distribution country expert for UK, Edward Miller, posted an article on a recent decision by The English Court of Appeal, in which the court found that software supplied by electronic download did not fall within the term “goods” under the UK regulations on commercial agents.   The Danish Supreme […]

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The EU Commission fines Guess € 39.821.000,00 for antitrust violations regarding its selective distribution network in the EEA.

The Commission found that Guess’ distribution agreements restricted authorized retailers from: 1) using the Guess brand names and trademarks for the purposes of online search advertising (namely referring to Google AdWords); 2) selling online without a prior specific (discretional) authorization by Guess; 3) selling to consumers located outside the authorized retailers’ allocated territories; 4) cross-selling […]

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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).

The case concerned the position of Zako SPRL, a Belgian limited liability company (“Société privée à responsabilité limitée” – SPRL), which performed several activities on behalf of another Belgian company, Sanidel SA, between 2007 and 2012, based on an unwritten agreement terminated by Sanidel on 30/10/2012.   Following a request for commissions and indemnities proposed […]

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SPAIN: The abolition of the Spanish franchisors’ registry.

The registration was mandatory and prior to the development of the franchising activity. The first regulation on the Franchisors’ Registry took place in 1998, through Royal Decree 2485/1998, of November 13th. To adapt Spanish laws to Directive 2006/123/CE regarding services in the internal market (Bolkestein Directive), on March 2nd, 2010, the Spanish Parliament approved Law […]

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INDIA: Changes to Indian Law on specific relief.

The Act makes significant amendments to the existing Specific Relief Act, 1963, which is the law related to the grant of relief for specific performance of all contractual arrangements in India (including agency and distribution arrangements). The Act has made the right to grant specific relief mandatorily enforceable by the courts. Previously, specific performance of […]

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

A joint employer could be liable for certain unfair labor practices. Moreover, as a joint employer, both the joint employer and the direct employer could be required to collectively bargain with the direct employer’s employees. Franchisors and franchisees have been frightened that to avoid liability, franchisors would either abandon all support and direction to franchisees […]

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

The Court also suggested some alternative drafting for such clause where the result could have been different. The case involved the Principal (AVANZALIA, an energy provider) and its Agent. According to the agency contract, clients should remain at least one year with such provider. The agency agreement included a so-called “claw-back” clause according to which […]

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

The Claimant also requested the court to confirm that the Claimant was not in breach of the agency agreement or any applicable laws and regulations implemented in Kuwait, and furthermore it has not conducted any direct distribution, sales or business activity within Kuwait territory to be subject to Income Tax law.  The Court of First […]

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

The business was unsuccessful. The plaintiffs sued the defendant, claiming that the relationship was actually a “franchise”, due to the definition of a “franchise” in the Arthur Wishart Act (Franchise Disclosure), 2000. The plaintiffs sought rescission on the basis that no disclosure document was provided by the defendant to the plaintiff, as required by the legislation, […]

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

The UK regulations apply only to agents for the sale of goods.  Although the Court of Appeal was not persuaded (in line with previous case law – see https://www.idiproject.com/news/uk-choice-texan-courts-may-not-oust-uk-jurisdiction-uk-agency-regulations-can-apply-sale – that a licence could not constitute a sale, the Court of Appeal did hold that software supplied electronically and not on any tangible medium could not constitute goods under […]

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POLAND: Verdict of the Polish Supreme Court dated February 15, 2018, I CSK 487/17.

The court of first instance, ruling on the claim of the principal against the agent for reimbursement of paid commissions, dismissed the claim. The court established that the parties cooperated on the basis of an agency agreement, pursuant to which the defendant undertook to act as a permanent intermediary in concluding lease agreements for the […]

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

The Provincial Court of Appeal of Tarragona has issued a judgment (September 13, 2018 EDJ 2018/568117) in which the goodwill (clientele) compensation to an agent of Vodafone Spain (Principal) has been recognized. Clientele compensation was granted because it was assessed not only because the agent had contributed to create it, but also because such clients […]

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ITALY: The consideration of the post-contractual non-competition obligation can be excluded in agency contracts.

Namely, Article 1751-bis, second paragraph, of the Italian Civil Code (introduced by Article 23.2 of Law No. 422 of 29/12/2000) provides as follows: “Acceptance of the non-competition agreement entails, on termination of the relationship, payment to the commercial agent of an indemnity not having the nature of commission (“indennità di natura non provvigionale”). The indemnity […]

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AUSTRALIA: Update – Report on Senate Franchising Code of Conduct inquiry.

You can find the former article on the IDI website at: https://www.idiproject.com/news/australia-report-senate-franchising-code-conduct-inquiry   Since our Article in April 2018: – on 4 May 2018, public submissions closed with a total of 216 received from various stakeholders, including, franchisors, franchisees, franchisee associations, legal bodies and private individuals involved in the franchising industry; – five (5) public […]

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COLOMBIA: Recent decisions refine the essential elements to differentiate the Commercial Agency from the Commercial Concession Contract.

Article 1324 of the Commercial Code establishes the right for the commercial agent to a severance payment which consists of “a sum equivalent to one twelfth of the average commission, royalty or utility received in the last three years, for each one of the validity of the contract, or the average of everything received, if […]

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INDIA: Significant Amendment to Anti – Corruption Regulations; Commercial Bribery made an offence.

The Amendment criminalizes bribe-giving by commercial organizations and provides that ‘Commercial Organisation’ shall include any entity which is incorporated in India and which carries on business, whether in India or outside India, or any entity which is incorporated outside India and which carries on business, or part of a business, in any part of India. […]

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UK: Colin Ali, Melanie Davis, Owain Golding, Ian Mcgreavy v Abbeyfield VE Limited [2018] EWHC 669 (Ch), 2018 WL 01509193.

The claim was for both fraudulent misrepresentation and if the claimants failed to persuade the court that the misrepresentations were fraudulent, then the claim would be for negligent misrepresentation. The court set out the four elements of fraudulent misrepresentation:               “(i) The defendant makes a false representation to the claimant.             (ii) The defendant knows […]

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