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|CPUC Rulemaking to Decide if Localities will be Shut Out of State Video Franchise Renewal Process|
Gail A. Karish, Harriet A. Steiner, Joseph Van Eaton; Best Best & Krieger LLP;
June 6, 2013, previously published on June 5, 2013The California Public Utilities Commission (CPUC) recently launched a proceeding to establish the rules that holders of state video franchises (such as Comcast, Time Warner Cable, Verizon, AT&T and others) must follow to obtain renewal of their franchises issued pursuant to the Digital...
|A Proposed Franchise Act for British Columbia, Canada|
John L. Rogers; Davis LLP;
May 29, 2013, previously published on May 28, 2013In March, 2013, the British Columbia Law Institute (“B.C. Institute”) published a “Consultation Paper on a Franchise Act for British Columbia” (the “B.C. Consultation Paper”), which includes a review of the structures of various types of franchise systems, the...
|Ohio Franchisors -- Is Your Liquidated Damages Clause Enforceable?|
Scott N. Opincar; McDonald Hopkins LLC;
May 22, 2013, previously published on May 17, 2013On October 31, 2012, the United States District Court for the Southern District of Ohio denied a franchisor’s demand for liquidated damages against two franchisees. The case, Leisure Systems, Inc. v. Roundup LLC, provides guidelines for determining whether liquidated damages clauses are...
|New Hampshire Supreme Court Holds Settlement Unenforceable Under Anti-Waiver Provisions of State Motor Vehicle Franchise Law|
Paul J. Halasz, Nancy Todaro; Day Pitney LLP;
May 22, 2013, previously published on May 21, 2013State motor vehicle franchise laws often proscribe agreements that purport to waive the statutory protections afforded to dealers. Thus, when a new franchise relationship is formed, a manufacturer cannot pressure the new dealer into forgoing legislative safeguards against termination or...
|No Cure Opportunity Required Where Auto Dealer's Breach is Incurable|
Lisa M. Gonzalo, Dennis R. LaFiura; Day Pitney LLP;
May 22, 2013, previously published on May 17, 2013Many state motor vehicle dealer statutes require that franchisors provide dealers with an opportunity to cure contractual breaches prior to implementing terminations. The question of whether such a statutorily-mandated cure provision required a motor vehicle franchisor to provide a dealer with an...
|Everything You Wanted to Know About Franchise Legislative Compliance (But Were Afraid To Ask)|
Edward (Ned) Levitt; Aird & Berlis LLP;
May 22, 2013Half of all the Canadian provinces, Alberta, Manitoba, Ontario, New Brunswick and Prince Edward Island, now have franchise specific legislation. Thankfully, from a franchisor’s perspective, these statutes are remarkably similar. There are differences, but they tend to be more technical in...
|Fourth Circuit Enforces Arbitration Clause over Franchisee Challenge|
Jesse C. Ehnert, Paul R. Marino; Day Pitney LLP;
May 22, 2013, previously published on May 21, 2013In a recent case involving three different challenges to an arbitration clause in a franchise agreement, the U.S. Court of Appeals for the Fourth Circuit held that the arbitration clause was enforceable despite the agreement's inclusion of (1) a class-action waiver, (2) a fee-splitting clause, and...
|California Launches Campaign to Collect Taxes from Out-Of-State Entities|
Loeb Loeb LLP;
May 20, 2013, previously published on May 2013A common misperception is that an entity formed in a state other than California is not subject to tax by California, which is fueled by a considerable amount of advertising encouraging Californians to save taxes by incorporating out of state. In reality, where an entity is formed has no impact on...
|Federal Statute Precluding Enforcement of Arbitration Clauses in Motor Vehicle Franchise Contracts Inapplicable to Snowmobile, ATV Dealer Agreements|
Peter C. Gourdine, Paul J. Halasz; Day Pitney LLP;
May 16, 2013, previously published on May 14, 2013Mandatory arbitration clauses are common in franchise agreements, including motor vehicle franchise agreements. Whether a manufacturer can enforce such a provision requires an analysis of competing state and federal statutes and a determination of whether the vehicles sold fall within the statutory...
|Attention Franchisors and Multi-Unit Franchisees|
McDonald Hopkins LLC;
May 15, 2013, previously published on May 8, 2013Since the Affordable Care Act (ACA) was signed into law in March 2010, small business owners, particularly franchisors and multi-unit franchisees, have been wary of the effects of its implementation on their businesses. One major concern has been the economic effect of the so-called “Employer...