Franchise agreements: contracts of adhesion?
Article Abstract:
Franchise agreements are not contracts of adhesion, but some courts continue to interpret them as such, sometimes incorrectly applying principles applicable to commercial or consumer contracts. Courts should consider factors such as parties' bargaining power or applicable regulations, rather than contract standardization, in evaluating adhesion claims. The US Supreme Court's Rudewicz should be used as the leading authority on this issue since it, along with several other rulings, rejects theories construing these agreements as adhesive. Other courts have ruled these contracts to be adhesive but enforceable.
Publication Name: Franchise Law Journal
Subject: Law
ISSN: 8756-7962
Year: 1996
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Gentis v. Safeguard Business Systems, Inc. liberal construction of remedial statutes: what is a franchise?
Article Abstract:
The California Court of Appeal affirmed a judgment against an alleged franchisor in Gentis v. Safeguard Business Systems, Inc., a class action brought by a class of present and former Safeguard sales representatives for violations of the California Franchise Investment Law (CFIL). The issue was whether the distributorship was a franchise and thus subject to the CFIL.
Publication Name: Franchise Law Journal
Subject: Law
ISSN: 8756-7962
Year: 1998
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