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Vol 7 (2009) - Issue 5

Consultation on vertical motor vehicle agreements

Cathy McKenna, Associate, Field Fisher Waterhouse LLP, London

The Commission has recently published for consultation its proposals in respect of the Motor Vehicle Block Exemption Regulation and the Vertical Agreements Block Exemption Regulation, which expire on 31 May 2010. This Report considers the Commission’s consultation on vertical motor vehicle agreements, in particular the different approach to the market for the sale of new vehicles and the after-sales market for repair and maintenance services and spare parts distribution.

Termination of franchise contracts - A comparative study

Dr Milan Parivodić, Partner, Wolf Theiss, Belgrade

A detailed analysis of the legal and contractual aspects of the termination of franchise contracts and the consequences of termination for franchisors, master franchisees and franchisees. The author addresses all aspects of this complex area of law from the standpoint of Serbian law as compared to the legal systems of Austria, Belgium, France, Germany, Italy, Japan, Switzerland and the United States. Particular consideration is given to how different rules may apply to franchise contracts as opposed to exclusive distribution agreements.

Selling franchises in a troubled economy

David W. Oppenheim, Partner and Felicia A. Nadborny, Associate, Kaufmann Gildin Robbins & Oppenheim LLP, New York

The lack of available financing for franchisees in the wake of the economic downturn has led to increased competition between franchisors for a smaller pool of qualified franchisees. International franchisors employing sales strategies in the United States need to be aware of the common law and federal and state franchise law governing the making of pre-sale representations during the sales process. This article considers troublesome pre-sale representations and tips for franchisors to avoid liability stemming from those representations in light of three recent cases.

New Zealand – Government says no to franchising regulation

Stewart Germann, Stewart Germann Law Office, Auckland, New Zealand

Following an extensive consultation the New Zealand government decided that there is no case for franchise specific regulation and that the current regulatory framework of generic business law and self-regulation is sufficient to address any problems which arise in the franchising sector. This article summarises the discussion and includes in annex a copy of the communication from the New Zealand Minister of Commerce.