Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Commercial Leasing Law & StrategyKickerFeaturesTopicsLitigationSectionsNewsLJN Newsletters

Rare Move By the U.S. Supreme Court

By Craig R.Tractenberg

The U.S. Supreme Court rarely tackles commercial law issues, but has addressed an important franchise law issue this year. Recently, a franchise law case did raise a federal question involving the Petroleum Marketing Practices Act (Act). The Act is intended to protect service station dealers from unjust terminations and non-renewal, but did not address constructive termination or nonrenewal. On March 2, 2010, the Court unanimously held that a franchisee that stays in business cannot sue for constructive termination under the Act. The Court also decided that a franchisee waives its constructive nonrenewal claim when it actually enters into a renewal agreement.

These decisions by the Supreme Court are more than mere questions of whether the dealers can obtain a federal forum. Under the Act, not only are the dealers entitled to a federal forum, but in addition, they are granted a relaxed standard in order to obtain a preliminary injunction against termination or nonrenewal and enhanced recovery of damages in the form of counsel and expert fees.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs Image

A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.

Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It Image

Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?

Blockchain Domains: New Developments for Brand Owners Image

Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.

Coverage Issues Stemming from Dry Cleaner Contamination Suits Image

In recent years, there has been a growing number of dry cleaners claiming to be "organic," "green," or "eco-friendly." While that may be true with respect to some, many dry cleaners continue to use a cleaning method involving the use of a solvent called perchloroethylene, commonly known as perc. And, there seems to be an increasing number of lawsuits stemming from environmental problems associated with historic dry cleaning operations utilizing this chemical.