NORWAY: The Norwegian Supreme court deny plaintiffs from outside EU/EEA protection under the Lugano Convention.

In Europe the Brussels and the Lugano (1) Conventions resolves such issues between parties domiciled within the EU/EEA area. But what if the matter at hand – or one of the parties – does not have any connection to the EU/EEA area? This was the issue in the ‘Trico/Raffles case’ resolved on the 20th December […]

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U.S.A.: Quick service pizza franchisor faces class action lawsuit for unsolicited text message advertising.

The Act bars companies from sending advertisements via text message if the recipient has not agreed to receive text messages from them. The customers sued Papa John’s and its marketing company, OnTime4U, alleging that Papa John’s franchisees worked with OnTime4U to send text messages advertising Papa John’s products without the customers’ consent. Certain Papa John’s […]

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FRANCE: ‘Prohibiting online marketing is…prohibited’: the French competition authority imposes unrestricted e-commerce.

In a decision rendered on 12 December 2012, the French competition authority (Autorité de la concurrence, hereinafter ‘ADLC’) imposed a €900,000 fine on the upscale consumer electronics manufacturer Bang et Olufsen (representing 5% of its sales in France!) for having prohibited its selected distributors from marketing its products online. The ruling comes in the wake […]

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ITALY: New rules applicable to distribution contracts and other business transactions.

On the one hand, Italy implemented the EU Directive 2011/7/EU of February 16, 2011 (which replaced the EC Directive 2000/35/EC of June 29, 2000) on combating late payments in commercial transactions, by amending the Legislative Decree No. 231/2002 (that previously implemented Directive 2000/35/EC). On the other hand, special provisions have been issued, some of which […]

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POLAND: Resolution of the 7 Judges of the Polish General Administrative Court – tax character of the bonuses for distributors.

‘The payment of the conditional financial bonus for obtaining of certain sales volume and/or for due and timely payments is a discount in the meaning of the Article 29 sec. 4 of the Polish VAT Act, which reduces the tax base.’ Pursuant to § 13 sec. 1 of the Regulation of the Ministry of Finance […]

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SWITZERLAND: Extension of the statute of limitations for the warranty term of the defective products in sales contracts.

More particularly, the current version of section 210, first paragraph, of the Code of Obligations provides that an action for breach of warranty of quality and fitness of the products sold becomes time-barred two year after delivery of the good to the buyer, even if the latter does not discover the defects until later, except […]

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CANADA: an interesting case law about Quebec jurisdiction.

Quebec Court of Appeal, Hi-Lex Corporation v. Bombardier Recreational Products Inc. Legal provisions The Civil Code of Quebec (CCQ) stipulates that the Quebec courts have exclusive jurisdiction where the parties have by agreement submitted to them all existing or future disputes between themselves arising out of a specified legal relationship.(1) Inversely, the Quebec courts have […]

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Brazil has ratified the 1980 Vienna Convention on International Sale (CISG).

On October 19, 2012, with the approval of the Federal Senate, Brazil has started the procedure for ratifying the Convention on International Sale of Goods (CISG – Vienna 1980). The Convention will enter into force for Brazil after twelve months following the deposit of the instrument of ratification (which is expected shortly), as provided by […]

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EGYPT: The Constitutional Court barricades the Agent’s goodwill compensation.

  The goodwill compensation for the Contracts Agent (the Commercial Agent) was introduced for the first time in the Egyptian legislation by the promulgation of the New Trade Law Nº. 17 for the year 1999 (hereinafter referred to as the ‘Commercial Code’), based on the fact that the Contracts Agency Agreement is concluded in the […]

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U.S.A: Recent decisions find that cleaning system franchisees should be classified as employees under Massachusetts law.

Under the Coverall System, the franchisor, before 2009, entered into all cleaning contracts with building owners and managers, and the franchisor billed customers for services provided by its franchisees. Coverall deducted its franchise fees and related fees from payments it collected from customers and remitted the balance to the franchisees. A group of franchisees initiated […]

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FRANCE: Crying foul over the prohibition / limitation of online selling.

In an opinion issued on 18 September 2012 regarding the ‘competitive functioning of electronic commerce,’ the French Competition Authority reaffirmed its desire to see the practice of online selling grow freely. Without waiting for the Paris Court of Appeals’ upcoming decision, i.e. the latest and perhaps last step in the ongoing Pierre Fabre Cosmétique ‘saga’ […]

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The IDI website features two new agency & distribution country experts for Iran and Pakistan.

The distribution report for Iran and the agency and distribution reports for Pakistan are now available in the Reports Section of the website, provided by Mahmoud E. Tabrizi, the new IDI agency & distribution country Expert for Iran and by Khalid A. Rehman, the new IDI agency & distribution country Expert for Pakistan. The CV […]

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CANADA: an interesting case law on distributorship contracts.

Abstract This case concerns an action in warranty taken by a Quebec importer, sued by his buyer, against the German manufacturer. The Supreme Court of Canada unanimously overturned a decision of the Quebec Court of Appeal, which had maintained a decision of the Superior Court dismissing an application by the German manufacturer to enforce a […]

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IDI/AFJE Joint Seminar in Lyon.

The seminar focused on distribution networks facing the economic crisis. The speakers analysed possible contractual solutions, aiming at overcoming financial difficulties of the distributor; guarantees and payment terms. Furthermore the discussion focused on cases where the contractual relationship ends: if termination is the only possible solution, how the economical crisis affects the circumstances of termination […]

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