Eleonora – Page 10 – IDI

U.S.A.: Trump administration and Republican Controlled Congress and State Legislatures Signal change in rush to find franchisors are joint employers of franchisees’ employees.

Posted on 3 July 2017 (15 April 2022)

In August, 2015, the NLRB decided a case involving Browning-Ferris Industries (BFI), revising its joint employer standard and holding that because BFI had the right to control certain aspects of a subcontractor’s employment practices, even if those rights were not exercised, it should be considered a joint employer with the subcontractor. Although the case did […]

UK: Two interesting case law on franchising.

Posted on 3 July 2017 (15 April 2022)

Armchair Answercall Limited v People in Mind Limited [2016] EWCA Civ 1039 Kendlebell operated a franchise offering telephone answering services. It had ten franchisees. Kendlebell approached Armchair Answercall (“AA”) with a view to being taken over but instead AA proposed a services agreement under which AA would manage the Kendlebell business under a new method […]

COLOMBIA: Tax reform and its effects over franchises.

Posted on 19 April 2017 (15 April 2022)

In general terms, the tax reform introduced 3 major modifications to the VAT and Consumption Tax schemes for international food franchises, as well as to the Withholding Tax rates, and the VAT rates. Previously, international food franchises were under the obligation of invoicing its products under the VAT System, rather than under the […]

SWEDEN: A notice period of six months was considered reasonable in a long-standing distribution relationship.

Posted on 15 March 2017 (15 April 2022)

The contract (based on an oral agreement) was made for an indefinite term, containing no provisions regarding termination or period of notice. The distributor, selling inter alia Massey Ferguson-tractors, acted on an exclusive basis within a specific area of Sweden. Referring to the principles set out in the Draft Common Frame of Reference (DCFR) […]

EU: New decision of the European Court of Justice on commercial agency contracts.

Posted on 15 March 2017 (27 June 2022)

The parties had submitted their contract to Belgian law and jurisdiction was referred to the courts of Gent, in Belgium. The judgement was the result of request for a preliminary ruling under Article 267 TFEU from the rechtbank van Koophandel te Gent (Commercial Court, Ghent, Belgium), made by decision of 3 September 2015, received at the […]

FINLAND: Arbitration clause held unreasonable.

Posted on 15 March 2017 (15 April 2022)

These were grounds serious enough for the Helsinki Court of Appeal to set aside the arbitration clause and permit the franchisee to have his case brought to court. The above being the essence of a judgment of 11 Jan, 2017 (#24, docket S16/838), the court justified its decision by concluding that the arbitration clause […]

SWITZERLAND: Swiss Competition Commission confirms a strict approach to the prevention of parallel imports.

Posted on 15 February 2017 (15 April 2022)

In respect of a further sizable order of warning beacons by the Swiss army’s procurement agency, a competitor of the exclusive Swiss importer made an attempt to import the Australian warning beacons via a distributor in Poland. The attempt remained fruitless as the Australian producer denied the delivery to the Polish distributor on request of […]

PAKISTAN: Discussion of the meaning and scope of the words ‘Franchise’ and ‘Franchise agreement’.

Posted on 15 February 2017 (15 April 2022)

‘(1) Franchise: Generally speaking, a franchise business takes effect when a person, either natural or artificial grants an authority or a right to another person, either natural or artificial, to market the former’s goods or services within a certain territory or location. Generally, there are two main types of franchises, [namely:] (a) Entire business format […]

FINLAND: Owners of franchisees regarded as employees of franchisor.

Posted on 15 February 2017 (15 April 2022)

Now, at least some 300 salespersons of the Remax network will face tax assessment for the distribution of the brokerage (commission), funneled pursuant to the franchise contract, to the franchisor being the broker but redistributed, less certain withholdings (franchise and service fees), to the franchisee being the company of the salesperson. And the franchisor is […]

ITALY: Challenging the validity of arbitral clauses in commercial agency contracts.

Posted on 18 January 2017 (20 October 2022)

The agreement in question, concluded in 1998 between a US buyer and an Italian agent, drafted on the basis of a US model contract, provided that possible disputes should be decided by arbitration under the rules of the American Arbitration Association, in conformity with New York law. The US principal terminated the agreement in 2002, […]

TURKEY: Analysis of franchisee’s goodwill indemnity claim under Turkish law.

Posted on 18 January 2017 (15 April 2022)

I. INTRODUCTION In line with the current economic and market needs, the producers who wish to reach out to customers prefer distributing their products/services through local dealers which are experienced and well- organized about local markets, instead of establishing their own distribution network (vertical integration). In accordance with this objective, long term relationships are […]

USA: Franchising could be affected by announced federal focus on wage collusion, noncompetes, and ‘other anticompetitive practices’.

Posted on 18 January 2017 (15 April 2022)

That possibility involves terms in many franchise agreements that prohibit franchisees from soliciting employees away from other franchises or from the franchisors itself. Under the new emphasis, such ‘anti-poaching’ agreements could be deemed illegal – or at least subject to investigations or litigation. The new ‘Antitrust Guidance for HR Professionals’ jointly issued by the FTC […]

ARGENTINA: A relevant case on damages on commercial agency under the Argentine new Civil and Commercial Code.

Posted on 18 January 2017 (15 April 2022)

The First Instance Court judged partially in favor of the claimant but the Court of Appeals, chamber D, rejected the claim insofar also the plaintiff claimed unpaid and pending accrued commissions, deemed subject to the statute of limitations and admitted only the compensation for clientele and the partial compensation of funds advanced by Cellurnet under […]

COLOMBIA: Hyundai’s Controversy in Colombia.

Posted on 19 December 2016 (15 April 2022)

The conflict goes back to September 15, 2015 when Hyundai Motor Company addressed a letter to Mr. Mattos, informing him that the agreement that conferred his company the distribution of Hyundai cars in Colombia was not going to be renewed, therefore, in January, 2016 the 23 years’ successful relationship between them, in which Hyundai went […]

AUSTRALIA: New unfair contract terms legislation.

Posted on 19 December 2016 (15 April 2022)

I previously wrote about the proposed laws last year, but the legislation has only recently come into effect in Australia. These laws have potential for impact upon franchise, distribution and licence agreements. The legislation applies to all standard form contracts entered into or renewed on or after 12 November 2016, where: it is for the supply of […]

KUWAIT: The Legal aspects of the Unwritten Distribution relationship in Kuwait.

Posted on 19 December 2016 (15 April 2022)

In this regards precedents have been established and settled accordingly by the Kuwaiti court of cassation ,based on the long term non documented relationships between the Principals and the distributors, which usually go back to decades and are being regulated by common industry practice and good faith. It is important to note that the new […]

E-Commerce Sector Inquiry: IDI observations to the preliminary report of the European Commission

Posted on 28 November 2016 (15 April 2022)

Such Preliminary Report was subject to a public consultation (ended on 18 November 2016) where all the interested stakeholders were requested to express their views on the matter. The final report is expected for March 2017. We are pleased to share with you the paper that IDI submitted to the Commission with the contribution of […]

UK: Injunction refused for “bad behaviour”?

Posted on 16 November 2016 (15 April 2022)

The defendants operated an Apollo franchise under three franchise agreements. The agreements were due to expire simultaneously and by letter sent, at the last possible moment, Apollo served notice that the franchise agreements would not be renewed because of alleged breaches of contract and because the franchisee had failed to serve their renewal notices within […]

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