The staff of the Federal Trade Commission ("FTC") that administers the FTC's Franchise Rule issues informal staff advisory opinions in response to inquiries concerning the applicability of the Rule. So far during 2005, the FTC staff has issued three such opinions.
In a decision that all franchisors need to note, on Aug. 4, 2005 the California Supreme Court ruled that pre-dispute waivers of a jury trial in a civil matter are unconstitutional under the California constitution. Many commercial agreements include a pre-dispute waiver of a jury trial so that businesses that prefer not to submit disputes to arbitration can elect to litigate claims and have their disputes heard by a judge rather than submit to a jury trial. The high court in Grafton Partners v. Superior Court (PricewaterhouseCoopers), 2005 Cal. LEXIS 8586, 4 (2005), affirmed an appellate court's decision to reject the 1991 appellate court decision upholding pre-dispute waivers of jury trials in Trizec Properties Inc. v. Superior Court, 229 Cal.App.3d 1616 (1991). This case will alter the way commercial contracts — from joint venture agreements, to franchise agreements, real estate leases and other contracts — are written. The Grafton decision is a call to California-based franchisors, and franchisors with franchises in California, to take stock of their decisions and provisions regarding dispute resolution.
In the first installment, published in July, we provided the background and general arrangements and actions 7-Eleven used in developing a new franchise agreement for virtually its entire 3400-store franchise system. In this installment, we discuss what occurred and why and what was learned from this effort. Please refer to the first installment for defined terms.
Everything contained in this month's issue in an easy-to-read format.
Recent rulings of importance.
For the past several months there has been a steady drumbeat in the press about the overheated real estate market. Is it a case of modern-day tulip mania or merely a reflection of the laws of supply and demand? Will prices continue to surge or is there a crash looming? Although macro economic factors doubtless are at play, nevertheless there has been little discussion of what action, if any, individual co-op and condo boards, buyers and owners can or should take, as a matter of law or policy, to protect their respective interests and preserve the stability of their buildings in this environment.
Recent rulings of importance to you and your practice.
Analysis of the latest rulings.
Highlights of the latest commercial leasing cases from around the country.
