LIABILITY OF CONTRACT PARTIES IN THE FRANCHISING CONTRACT

Authors

  • Milena Kavarić, PhD The Mediterranean University, Faculty of Law, Podgorica

DOI:

https://doi.org/10.5937/spz1802065K

Keywords:

liability, franchisor, franchisee, obligations

Abstract

The specificity of the franchise agreements, as well as the fact that they are mainly dictated by franchisees who want to minimize their possible liability, make these contracts interesting from the aspect of the liability of the contract parties, because in addition to the usual, there are some specific liability. Given the fact that at the pre-accession stage, the franchisor is obliged to inform the user of all data whose disclosure has the most decisive influence on the determination of the potential beneficiary to conclude the contract, the pre-contractual liability has been established. One of the specific liabilities of the franchisor within the pre-contractual phase is the liability of the franchise business success of the franchisee, as the franchisor in the pre-contractual information often presents to the potential user a very optimistic forecast of success in order to persuade the franchisee to join the network. The specificity of the franchise agreement is also related to the non-contractual liability of the franchisor. Arguments for this liability are based on the control that the provider has over the business of the user, but also the impression that is present in the public that this is one entity.

Downloads

Download data is not yet available.

References

Baillicu, V. D., Streetwise Franchising, Hutchison Business, London, 1988.

Blumberg, I. P., Strasser, A. K., Enterprise Liability in Commercial Relationships: Including Franchising, Licensing, Health Care Enterprises, Successor Liability, Lender Liability, and Inherent Agency, Aspen Law & Business, 1998.

Bueno Diaz, O., Franchising in European Contract Law: A comparison between the main obligation of the contracting parties in the Principles of European Law on Commercial Agency, Franchise and Distribution Contracts (PEL CAFDC), French and Spanish Law, Vol. 8, European Law Publishers, 2008.

Burns, T., “The Legal Implications of Reputation Risk Management for Franchisors”, Journal of International Commercial Law and Technology, Vol. 2, 4/2007, 231-240.

Flynn, R. M., „The Law of Franchisor Vicarious Liability: A Critique“, Columbia Business Law Review, 1993, 89-97.

Mlikotin-Tomić, D., Ugovor o franchisingu, Informator, Zagreb 1986.

Parivodić, M., Pravo međunarodnog franšizinga,Službeni glasnik, Beograd 2003.

Perović, J., „Zaštitne klauzule u međunarodnim trgovinskim ugovorima“, Pravni život, 12/2009, 480-500.

Sappideen, C., Paul O’Grady and Geoff Warburton, Macken’s Law of Employment, Thomson Reuters, 6th ed. 2009.

Spasić, I., Franchising posao, Institut za uporedno pravo, Beograd 1996.

Terry, L. A., Huan, L. J., „Franchisor Liability for Franchisee Conduct“, Monash University Law Review, Vol 39, 2/2013.

Sudska praksa

Beck v Arthur Murrey 54 Cal Rptr 328 (1966).

Billops v Magness Construction 391 A 2d 196 (1978).

BP Exploration & Oil Inc. V. Jones (558 S.E.2d. 398 (Ga. Ct. App.2001)).

Cass. com. 4. dec. 1990, JCP, 1911. II, 21725, note G. Virassamy.

Cass. com. 24. Februar 1998, D. 1998, somm., p.337. obs. D. Ferrier.

Chevron Oil v Sutton 515 P 2d 1283 (1973).

Coty v United States Slicing Machine Co 373 NE 2d 1371 (1978).

Commerce Commision v Contours Exclusive Ltd.

Dorsic v Kirtin 96 Cal Rptr528 (1971).

Drexel v Union Prescription Centers 582 F 2d 781 (1978).

Fidelman-Danziger v Statler Management 136 A 2d 19 (1957).

Fitzgerald v H&R Block The Income Tax People Ltd.

Font v. Stanley Steemer Int’l Inc. (849 So. 2d 1214 (Fla. Dist. Ct. App. 2003)).

Gizzi v. Texaco Inc. (437 F.2d 308 (5th Cir.), cert. denied, 404 U.S. 829 (1971)).

Holiday Inns v Newton 278 SE 2d 85 (1981).

Hyde v Schlotzsky’s Inc, 561 SE 2d 876 (Ga Ct App), 2002.

Morse v McDonald’s Corporation (Conn Super Ct, No CV 000379426S), 6 November, 2001.

Myszkowski v Penn Stoud Hotel, Inc. 634 A. 2d 622 (1993).

Nelson v International Paint 734 F 2d 1084 (1984).

Nichols v Arthur Murrey Inc 56 Cal Rptr 728 (1967).

Northern v McGraw-Edison & Co 542 F 2d 1336 (1976).

Ottermeyer v Baskin 625 P 2d (1981).

Pizza K Inc. v. Santagata (547 S.E. 2d 405 (Ga. Ct. App. 2001)).

Read v Scott Fetzer Co, 990 SW 3d 732 (Tex, 1998).

Sentencia Audiencia Provincial Zaragoza 25. jul. 2000, JUR 2000/273349.

Singleton v International Dairy Queen 332 A 2d 160 (1975).

Slates v International House of Pancakes 413 NE 2d 457 (1980).

Stanford v Dairy Queen Products 623 SW 2d 797 (1981).

United States District Court of Massachusetts, Awuah v Coverall North America Inc.

Quad-L v Tastee Freez 528 NE 2d 1107 (1988).

Wunder v Mobil Oil Corporation (Conn Super Ct, No X04CV000120525S), 24 October, 2002.

United States, Courts judgements: https://www.casemine.com/judgement/us/5914c56cadd7b049347d4014

https://www.casemine.com/judgement/us/5914c85dadd7b049347e9a83

https://www.casemine.com/judgement/us/5914b93eadd7b04934789f83

https://www.casemine.com/judgement/us/59147f78add7b04934462204

https://www.casemine.com/judgement/us/59147a7fadd7b0493440be43

https://openjurist.org/437/f2d/308/gizzi-v-texaco-inc-giaccio

https://openjurist.org/437/f2d/308/gizzi-v-texaco-inc-giaccio

https://casetext.com/case/fdelman-danziger-inc-v-statler-m-inc

http://www.leagle.com/decision/1993745430PaSuper315_1741

https://www.courtlistener.com/opinion/3365056/morse-v-mcdonalds-corporation-no-cv00-0379427-s-nov-6-2001/

http://caselaw.fndlaw.com/ga-court-of-appeals/1197219.html

Internet izvori

Federal Trade Commission’s Trade Regulation Rule,1979 (noveliran 2008).-https://www.ftc.gov/.

Nacrt Građanskog Zakonika Republike Srbije, 2015. - https://www.mpravde.gov.rs/fles/NACRT.pdf.

UNIDROIT Guide to International Master Franchise Arrangements, 1998 (noveliran 2007). - https://www.unidroit.org/franchising-guide-secondedition-2007-overview

UNIDROIT Model Franchise Disclosure Law, 2002. -https://www.unidroit.org/instruments/franchising/model-law.

UNIDROIT Principles of international commercial contracts, http://www.unidroit.org/publications/513-unidroit-principles-of-internationalcommercial-contracts

Downloads

Published

18-07-2018

Issue

Section

Original scientific papers