UKRAINE: Anti-Monopoly Committee of Ukraine will verify non-compete covenants in vertical agreements for Ukraine.

The AMCU’s representatives voiced that, indeed, currently there is no official practice and interpretation of the non-compete covenants of the vertical agreements. At the same time, the AMCU stressed its watchful attitude to such frequently used in the vertical relations ‘tools’ as bonuses, discounts, other privileges applied differently to distinct distributors. In order to avoid […]

Read More…

U.S.A.: Terminated franchisee must pay franchisor its lost future profits arising from termination.

In this case, Meineke, a franchisor of automotive services, terminated RLB Holdings’ franchise agreements based upon its abandonment of its franchised shops. Meineke brought suit against RLB in North Carolina state court, alleging that RLB breached the franchise agreements and caused Meineke to lose future royalties and advertising fees. The case was removed to the […]

Read More…

SWITZERLAND: Developments in the Law of Exclusive Distribution.

Overview Situation until 2009: No Compensation Claim upon Termination of Distribution Agreements. Up until recently Swiss lawyers had to advise their clients that the Federal Supreme Court in its practice dating back to the early sixties had refused to apply by analogy the pertinent law on agency and to grant the distributor a mandatory claim […]

Read More…

EU: Pierre Fabre – The EU Court of Justice last judgment on Internet sales.

The case Pierre Fabre manufactures and markets cosmetics and personal care products and has several subsidiaries, including, inter alia, the Klorane, Ducray, GalÇnic and Aväne laboratories, whose cosmetic and personal care products are sold, under those brands, mainly through pharmacists, on both the French and the European markets. In 2007, the Pierre Fabre group had […]

Read More…

AUSTRIA: Agent’s termination for reasons of age without regular retirement and indemnity.

  The female commercial agent at the age of 58 years terminated the agency contract with effective date April 30, 2008. The responsible social insurance institution decided on August 5, 2008 that she is entitled to early retirement (before the regular age of 60 years) with the effective date May 1, 2008. This was due […]

Read More…

CANADA: Quebec Court of Appeal, 2010-12-10, Rheaume et al. v. Societe d’Investissements l’Excellence Inc. et al.

  The present decision stresses the importance of setting out clearly the procedure to be followed by the arbitrators and what rules they must follow. It is possible to refer to the procedural rules of the legislation governing the contract. For example, if the contract is governed by Quebec law, it should be stated that […]

Read More…

U.S.A.: Enforcing Post-termination Covenants Not to Compete.

The United States does not have a federal law that governs the enforcement of such covenants; rather, enforcement is governed by state law. Restrictive covenants are generally disfavored because they act as restraints on trade and may interfere with the franchisee’s employment prospects. Some states have enacted statutes that govern restrictive covenants, while many others […]

Read More…