A 'consumer protection' bill that would bar as invalid and unenforceable mandatory arbitration provisions relating to, among other things, franchise disputes is presently referred to the Senate's Judiciary Committee and the House of Representatives' Committee on the Judiciary and its Subcommittee on Commerce and Administrative Law. If passed by Congress, the Arbitration Fairness Act of 2007 ('AFA') (S. 1782 and H.R. 3010) introduced by sponsors, Sen. Russ Feingold (D-WI) and U.S. Rep. Hank Johnson (D-GA), would significantly, in both the eyes of franchisors and their franchisees, amend the Federal Arbitration Act, 9 U.S.C. '1, et seq. ('FAA') to not only invalidate mandatory arbitration provisions in the context of franchise disputes, but also for consumer and employment disputes as well.
- September 27, 2007John J. Jacko III
Franchisors often seek injunctions to enforce non-competition and other covenants contained in their franchise agreements, sometimes during but most often after the end of the franchise relationship. A common example is an injunction to enforce a covenant in which the franchisee contracts to not compete in a similar business for a specified period of time and within a specified geographic area. If successful, the moving party-franchisor is granted an injunction forcing the former franchisee to abide by its contractual obligations for the specified time period. Given the time it generally takes to reach trial, the non-competition clause often will expire before the trial occurs. As such, a successful interlocutory injunction motion often will finally decide the issues for the franchisor, rendering the trial moot. Given this reality, parties frequently settle after a successful interlocutory injunction, or the case may be abandoned after an unsuccessful one.
September 27, 2007Jennifer Dolman, Denise Sayer and Jon S. SwierzewskiLast month, we wrote that the latest hot topic in corporate executive abuses may be manipulation of traders under prearranged Rule 10b5-1. We said that once a determination is made to review the historical operation of a 10b5-1 plan, reviewers should consider as a threshold issue whether they are sufficiently independent from the subject plans and traders to be properly regarded as objective. We continue with a list that describes several steps that could be taken to reveal some of the 10b5-1 plan abuses that commentators speculate may exist.
September 27, 2007David Washburn and Spencer BaraschThe recent settlement of parallel FCPA actions in the Southern District of Texas against Baker Hughes, Inc., a major oilfield service company, and its wholly owned subsidiary Baker Hughes Services International Inc. (collectively 'Baker Hughes'), underscores the importance of complying with the FCPA's provisions in emerging markets.
September 27, 2007Michael E. ClarkIn an effort to level the playing field for U.S. businesses overseas, many OECD countries adopted the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions in 1998. Nearly 10 years later, the main result may have been to enlarge the playing field of U.S. law enforcement.
September 27, 2007Laurence A. Urgenson and Audrey L. HarrisWho's going where; who's doing what.
September 27, 2007ALM Staff | Law Journal Newsletters |The latest news you need to know.
September 27, 2007ALM Staff | Law Journal Newsletters |A movement is slowly building to abolish century-old medical malpractice laws that judge a doctors' performance by the medical standards existing in his or her community. Those laws, known as 'locality rules,' are still on the books in 21 states.
September 27, 2007Tresa BaldasTwo important cases for your review.
September 27, 2007ALM Staff | Law Journal Newsletters |