SWEDEN: New precedent from the Swedish Supreme Court regarding notice of termination in distribution contracts.

Since the distributor couldn’t substantiate that a certain term of notice had been agreed contractually, and the supplier failed to prove that the contract allowed termination with immediate effect, the Supreme Court examined the rules within supplementary law. Comparing various provisions regarding periods of notice – inter alia in the Commercial Agents Act, the Commission […]

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SPAIN: New Regulation on Franchising.

I. GENERAL IDEAS Article 62 of the Retail Act (as amended by Act 1/2010 of March, 1st) contains the basic regulation on franchise agreements. Paragraph 2 of this Article includes the obligation of franchisors to inform the Franchisors Register within three months, of the starting of their activity. This obligation is also compulsory for franchisors […]

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IDI ANNUAL CONFERENCE ON REGULATION 330/2010: Torino (Italy) 11-12 June, 2010.

NEW ISSUES IN INTERNATIONAL DISTRIBUTION The new EC regulation on vertical restraints and its forthcoming guidelines: a first overview of the present state of the law. How to deal with insolvency of distributors/franchisees. Register now to the IDI annual conference! Only few places available for the gala dinner. Registration on-line Registration Form Program […]

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U.S.A.: California and Montana Courts Invalidate Common Franchise Arbitration Provisions.

Generally, all disputes may be arbitrated, unless the arbitration agreement (rather than the entire agreement in question) was induced by fraud, or where the agreement would not be enforceable as a contract under applicable state laws.(3) If a party to a contract containing an arbitration agreement initiates litigation in court, the other party(ies) may move […]

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THE NETHERLANDS: Protection of selective-distribution systems by the Dutch Supreme Court.

The facts of the matter were as follows. The Dutch distributor Alfa Romeo Nederland B.V. distributes the Alfa Romeo cars in The Netherlands by means of a selective-distribution system. The official dealers admitted to this selective-distribution network are bound by resale restrictions. The defendant in this matter was an official dealer originally which had ceased […]

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CANADA: verbal distribution agreements are binding on both parties; courts cannot modify a freely negotiated notification period.

Quebec Court of Appeal, 06-02-2007, case no. 500-09-015542-053. Before being heard by the Quebec Court of Appeal, this case had been in front of the Superior Court for 13 years before a decision was rendered. The Superior Court had awarded damages in the amount of $52,452 and $30,000 in experts’ fees to Admaco in compensation […]

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U.S.A.: New Jersey Expands Coverage Of Its Franchise Practices Act.

Under the Act, a franchisor may not terminate, cancel or fail to renew the contract of a franchisee absent ‘good cause’ which is ‘limited to failure by the franchisee to substantially comply with those requirements imposed upon him by the franchise.’. The law also prohibits franchisors from engaging in other unfair business practices. The Act […]

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TURKEY: Decision No° 2009/11416 of the 28 May 2009 by the 19th Civil Chamber of the Turkish Supreme Court.

The dealer is alleged to violate his obligation of non competition and sell competing products. For this reason the supplier seeks for indemnification of the amount indicated in the agreement as penalty for violating the non competition obligation. The Court of First Instance accepted the claim and the dealer appealed the decision. However, a decision […]

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UE: The 2007 revised text of the Lugano Convention has entered into force on January 1, 2010.

The revised Lugano Convention on Jurisdiction and Enforcement of Judgements in Civil and Commercial Matters has been ratified from the European Community on May 18, 2009, with effect for all its member States with the exception of Denmark, who followed on 24 September 2009. On 1st July 2009 the Kingdom of Norway ratified the Convention […]

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FRANCE: The EU Court of First Instance fined a French carmaker on the basis of Art. 81 of the EC Treaty.

A carmaker set up a compensation system for its Dutch dealers that involved awarding them a bonus for every sale of a car registered in the Netherlands, but only if the dealer had surpassed his contractual objective, and put pressure on its dealers to deter them from exporting cars, particularly by threatening to decrease deliveries […]

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