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|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...
|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...
|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...
|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...
|Proposed Legislation to Expand Growler Sales in North Carolina|
M. Keith Kapp, Jennifer A. Morgan; Williams Mullen;
May 15, 2013, previously published on May 13, 2013Retailers in North Carolina, including grocery stores, bars, restaurants, and specialty beer and wine shops, may soon be allowed to fill and sell growlers to customers for off-premises consumption if new legislation currently being considered by the North Carolina General Assembly goes into effect.
|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...
|Ontario Court of Appeal Provides Guidance on the Definition of "Franchisor’s Associate"|
McCarthy Tetrault LLP;
May 13, 2013, previously published on May 6, 2013A recent decision of the Court of Appeal for Ontario (ONCA) helps define the concept of "control," as it relates to the definition of a "franchisor’s associate" in the Ontario Arthur Wishart Act (Franchise Disclosure), 2000 (Act).
|U.S. to Cut Automotive Tariffs as Japan Enters TPP Talks|
Christopher M. Swift; Foley & Lardner LLP;
May 7, 2013, previously published on May 6, 2013On April 24, 2013, Acting U.S. Trade Representative (“USTR”) Demetrios Marantis formally notified Congress that the United States plans to include Japan in Trans-Pacific Partnership (“TTP”) negotiations. Coming just three days after the TTP parties accepted Japan’s...
|Most Favored Nation ("MFN") Pricing Draws Scrutiny as Potential Anticompetitive Practice|
James T. McKeown; Foley & Lardner LLP;
May 2, 2013, previously published on April 29, 2013An interesting and growing debate in the antitrust arena is whether most favored nation (“MFN”) pricing provisions are pro-competitive or anticompetitive. For many years, MFN provisions have been considered a fairly noncontroversial contract term included by purchasers in an attempt to...