Queen City Pizza: bad law for franchisees

Article Abstract:

The United States Court of Appeals for the 3d Circuit ruled in Queen City Pizza v. Domino's Pizza, Inc. that the ongoing relationship between a business format franchisor and its franchisees was immune from antitrust scrutiny. The approach taken by the court is an incorrect interpretation of the Supreme Court's decision in the Kodak case. Kodak required discovery so plaintiffs could produce evidence of market realities which, if produced, should have entitled them to a jury trial.

Management

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Courts stress importance of clear clauses; recent decisions have held that the intent of parties to be bound by or supersede arbitration clauses must be spelled out

Article Abstract:

The prevailing view that arbitration clauses are effective without a showing of clear evidence of intent to supercede has been challenged by recent state and federal court decisions. These hold that the clauses fail for lack of specificity with respect to any number of elements including intent, duration, bindable parties, and evidentiary procedures.

Contract Administration, Laws, regulations and rules, Arbitration (Administrative law), Administrative arbitration, Contract management

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Protecting franchisees from abusive arbitration clauses

Article Abstract:

The author outlines legal arguments available to franchisees to defeat arbitration clauses that aim to achieve ends that would not be permissible in litigation. Topics include the current use of arbitration clauses and the use of mandatory arbitration by employers and commercial firms.

United States, Negotiation, mediation and arbitration

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