SPAIN: Evidences in a procedure for price fixing in distribution relationship in the Sentence of the Audiencia Nacional of January 16, 2008.

The Competition Court considered at that time that these companies had entered into an agreement forbidden by the former Competition Act in its Article 1.1.a) (actually also article 1.1.(a) of the New Competition Act 15/2007 of July 3). This agreement consisted, according to the Competition Court, in the fixing of minimum prices for the retailing […]

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FRANCE: The use of Internet in a distribution contract.

The Court of Appeal dismissed this claim on the ground that ‘there is no rule or standard commercial practice which prohibits suppliers from informing their distributor’s customers or selling agents, shortly before the expiration date of the distribution agreement, that after said date they will have to procure their supplies from another distributor; this information, […]

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JAPAN: RECENT CASE LAW ON FRANCHISING

The master franchise agreement had no non-competition clause for the post-termination period so that the master franchisee was admitted the freedom to establish a new franchise network in the same business and to recruit the subfranchisees to become franchisees of the latter. The application by the franchisor for a court order enjoining the master franchisee […]

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DENMARK: New case-law on service agents under the Danish Agency Act.

The agent (Sellect) was appointed by the principal (Telia Mobile) to obtain orders for telecommunication services offered by the principal. The court established that only commercial agents engaged in the buying or selling of goods are covered be the definition of commercial agents in the Danish Agency Act, for which reason the Act did not […]

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FRANCE: The Paris Court of Appeals enforces clause setting a sales agent’s termination indemnity at one year’s commission.

The Court of Appeals upheld the lower court’s decision setting the indemnity at one year’s worth of commissions. The judges took into consideration the terms of the contract, which provided for an indemnity equal to twelve months of commissions, the duration of the relationship between the parties (three years), and the fact that the contract […]

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UKRAINE: RECENT CASE LAW ON FRANCHISING.

The Franchise Agreement provided for the standard mutual obligations of the parties according to the relevant international practice in the sphere of the franchising relations. However, after entering into the Franchise Agreement both parties have infringed the provisions of the latter. Finally, the Franchisor filled the claim within the competent commercial court for (a) termination […]

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JUDGEMENT OF THE EUROPEAN COURT OF JUSTICE on the agent’s right to commission:

Art. 7 (2) of the Directive provides that a commercial agent shall be entitled to commission on transactions concluded during the period covered by the agency contract: either where he is entrusted with a specific geographical area or group of customers, or where he has an exclusive right to a specific geographical area or group […]

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SWEDEN: New precedent from the Swedish Supreme court regarding indemnity.

The commercial agent was in this case operating in Germany and the principal was located in Sweden. According to the agency agreement the commercial agent was obliged to market and promote the sales of various computer based tax programs in Germany. Since a time-limited license of computer programs is not regarded as ‘goods’ within the […]

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POLAND: Verdict of the Constitution Tribunal dated July 17, 2007 (case number P 16/06)

The judiciary question arose in the following case: Plaintiff (Agent) claimed goodwill indemnification from an insurance company (Principal) on the basis of an agency contract concluded on August 20, 1997 and terminated on May 9, 2002 by mutual consent. The agency contract was concluded before the provisions on goodwill indemnification came into force and terminated […]

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AUSTRIA: a new judgment of the Supreme Court on immediate termination of an agency agreement (Austrian Supreme Court 30 July 2007, 8Ob70/07p)

The courts of first, second and last instance dismissed the action. In their opinion the contractual parties may effectively stipulate good reasons which justify immediate termination (as long as they do not concern i.e. unrealistic objectives or other contents contradicting good faith). It would have been up to the commercial agent to proof that no […]

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AUSTRIA: Claim for compensation and commission toward Austrian subsidiary company in case of insolvency of German parent company.

The action for compensation for loss of clientele was dismissed. Basic requirements for compensation are advantages with continuing effects for the principal, whereby he has to compensate the loss of commission of the agent. If operations have been stopped for months (and the parent company is insolvent), no such advantages persist. Against this background it […]

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