Francesca – IDI

UK: UK government’s consultation on abolition of Commercial Agents Regulations – implications and how to participate

Posted on 15 July 2024

Key takeaways New government consultation launched proposing to abolish the Commercial Agents Regulations. The Commercial Agents Regulations have been in force since 1 January 1994, pursuant to an EU-wide directive. They provide important statutory protection to agents, including a right to a goodwill termination payment. If the government proceeds with its plans, it will have […]

EU: Is resale price maintenance still strictly prohibited? Does the Super Bock case of the Court of Justice leave space for a less rigid approach?

Posted on 15 July 2024 (16 July 2024)

Introduction The EU Commission has always taken a very strict approach on the issue of resale price maintenance, leaving practically no space for exceptions in cases where a certain control over resale prices by members of the distribution network would be necessary for avoiding aggressive price competition, which has been made easier by the […]

ITALY: Franchising contracts and minimum duration of 3 years

Posted on 15 July 2024 (15 July 2024)

The Italian Supreme Court has finally confirmed an important principle, previously expressed by some lower Courts, which remedies a probable mistake made when approving Law 129 of 2004 (Italian Franchising Law). Article 3.3 of Law 129/2004 provides that the franchise contract must have a minimum duration of three years in order to allow the franchisee […]

NORWAY: HOW CLOSE SHOULD YOU GET? Balancing transparency with protection

Posted on 17 May 2024

Balancing transparency with protection is an essential element in most distributor-principal relationship. Generally, the principal brings product knowledge and the distributor provide market knowledge. But the roles are often more complex. Adapting product to local markets or introducing new solutions requires that both parties participate in technical as well as market considerations. And often cooperation […]

ISRAEL: Supreme Court – commercial agent is entitled to a “decent fee” for his assistance to the principal after the agreement between them ended, but if the (former) agent neglected to agree on the specific fee for his service and, consequently, the parties were involved in lengthy and costly legal proceedings, his fee would be reduced.

Posted on 17 May 2024 (20 May 2024)

The agent was appointed in order to promote the sales of specific machines of the principal (a foreign company). Under the agreement, the agent was entitled to a commission of 25% of the sales proceeds. Several years later, the main customer, the Airports Authority, decided to terminate the agreement with the principal and entered into […]

INDIA: Provisions of the Arbitration Act supersede institutional arbitration rules

Posted on 17 May 2024 (17 May 2024)

The Bombay High Court recently held in a judgement dated 26th February 2024 that the provisions of the (Indian) Arbitration and Conciliation Act, 1996 (“Arbitration Act”) would supersede any institutional arbitration rules that parties to a contract choose by way of an arbitration agreement or clause. In the present case, two parties to a sale […]

AUSTRALIA: Franchising Code of Conduct Review

Posted on 16 April 2024

On 8 February 2024, the Minister for Small Business, the Hon Julie Collins MP, released the Independent Review of the Franchising Code of Conduct (Code) by Dr Michael Schaper. 1. Summary The Review assessed the fitness for purpose of the Code, with particular regard to the provisions relating to new vehicle dealerships and the […]

BELGIUM: PRE-CONTRACTUAL DISCLOSURE REQUIREMENTS REVISITED

Posted on 16 April 2024

The Belgian Code of Economic Law requires disclosing specific information before concluding, amending, or renewing a commercial partnership agreement defined as an agreement: (i)entered between two independent parties, each acting in his own name and on his own behalf, (ii) whereunder the right to use a commercial concept that implies either (a) the use […]

FRANCE: By decision n° 23-D-13 dated 19 December 2023 (the “Decision”), the French Competition Authority (the “FCA”) fined Rolex France SAS, as perpetrator, jointly and severally with Rolex Holding SA and the Hans Wilsdorf Foundation, as parent companies, a total of 91,600,000 euros for prohibiting its selected distributors from selling its luxury watches online.

Posted on 16 April 2024 (16 April 2024)

This Decision follows the referrals made in January 2017 by the professional organisation Union de la Bijouterie Horlogerie and the company Pellegrin & Fils. These referrals come in the context of a dispute between Rolex France and its distributors following the network head’s wish to restructure its distribution network in France, which involves reducing the […]

KUWAIT: Foreign companies to conduct business and tenders directly in Kuwait.

Posted on 19 March 2024 (20 March 2024)

Kuwait has recently enacted a new Law No. 1/ 2024 which was published on 21/1/2024 in the Kuwait Gazette, granting foreign companies the right to set up branches in Kuwait to carry out its work and business without appointing a local contract agent, logistic sponsor, or distributor. The new law aims to eliminate any constraints […]

BULGARIA: New block exemption decision adopted by the Bulgarian Competition Protection Commission

Posted on 19 March 2024

On 11 January 2024, the Bulgarian Competition Protection Commission (the ‘Commission’) officially adopted a new Block Exemption Decision (the ‘Decision’) of certain categories of agreements, decisions and concerted practices. 1. Prohibited Agreements and Block Exemption Article 15 of the Bulgarian Competition Protection Act (the ‘Act’) prohibits all agreements between undertakings, decisions by associations of undertakings […]

NEW ZEALAND: Force majeure in relation to licence agreements in New Zealand

Posted on 19 March 2024 (19 March 2024)

Chitty on Contracts states that a “force majeure clause” is normally used to describe a contractual term by which one (or both) of the parties is entitled to cancel the contract or is excused from performance of the contract, in whole or in part, or is entitled to suspend performance or to claim an extension […]

BELGIUM: Decision of the Belgian Supreme Court on of “pre-contractual information obligations” in a franchise agreement

Posted on 19 March 2024 (23 July 2024)

On June 2, 2023, the Belgian Supreme Court has ruled in a matter concerning the breach of “pre-contractual information obligations” in a franchise agreement. Pursuant to Article 3 of the Law of December 19, 2005 concerning “pre-contractual information in commercial cooperation agreements”, (as revised by article 4, 2° of the law of April 2, 2014), […]

TURKEY: Decision of the 11th Chamber of the Turkish Supreme Court Assessing the Penalty Clause and Termination Fee within the Franchise Agreement.

Posted on 19 February 2024 (19 February 2024)

The lawsuit is related to the claim of the franchisor for the collection of the franchise fees for the remaining term of the franchise agreement together along with the penalty clause based on the claim that the franchise agreement between the parties has been terminated by the franchisee without any justifiable ground. The Court of […]

BELGIUM: Decision of the Belgian Supreme Court on an explicit termination clause.

Posted on 19 February 2024 (19 March 2024)

On May 11, 2023, the Belgian Supreme Court has ruled in a matter concerning the immediate termination of a distribution agreement, based on an explicit termination clause. The case concerned the termination of a distribution agreement by Rolex. A contract clause allowed Rolex not only to terminate the agreement in case of contractual breach, but […]

INDIA: Supreme Court overrules earlier decision regarding unenforceability of unstamped arbitration agreements.

Posted on 19 February 2024 (19 February 2024)

The Supreme Court of India overruled a decision from 2023 regarding the enforceability of arbitration agreements, on which stamp duty was not paid as mandatorily required under the Indian Stamp Act. The Indian Stamp Act provides that ‘stamp duty’ (an indirect tax paid to the Government) must be paid on all instruments on which such […]

EU: A contract to enter into a future contract of franchising does not fall under the notion of ‘provision of services’ provided by Regulation Brussels I bis

Posted on 15 January 2024 (18 January 2024)

With judgement of September 14, 2023 (in the proceeding C-393/22, EXTERIA s.r.o. v. Spravime s.r.o.), the European Court of Justice decided on the interpretation of Article 7(1) Reg. No. 1215/2012, in the context of a contract to enter into a future contract of franchising. Facts On 28 June 2018, EXTÉRIA s.r.o., a company established in […]

CANADA: Conscious Compliance: The Role of Foreign Corporations in Canada’s Fight Against Modern Slavery

Posted on 15 January 2024 (16 April 2024)

Franchisors and parent companies supplying goods for sale in Canada should begin to evaluate and address the ethical standards of their supply chains. Bill S-211, An Act to enact the Fighting Against Forced Labour and Child Labour in Supply Chains Act and to amend the Customs Tariff (the “Act”) will impose annual reporting obligations on Canadian businesses […]

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