Selecting the proper forum to enforce one's choice of forum
Article Abstract:
Forum selection clauses such as California Business and Professions Code 20040.5, which tries to void the contractual provisions in franchise agreements requiring California-based franchisees to litigate disputes with out-of-state franchisees outside of California, have become standard in the franchise context, as they protect a national franchisor from having to litigate all over the country. However, federal policies on forum selection enforceability may be important than those of the California legislature since such disputes lead to diversity jurisdiction in federal court.
Publication Name: Franchise Law Journal
Subject: Law
ISSN: 8756-7962
Year: 1998
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Kubis and the changing landscape of forum selection clauses
Article Abstract:
The NJ Supreme Court's 1996 Kubis case decision says that franchisors must prove the fairness of otherwise presumptively invalid franchise agreement forum selection clauses, despite other earlier court decisions to the contrary. This improperly shifts the burden to the franchisor in an effort to ensure fair bargaining power in negotiating franchise contracts. The decision raises similar issues for determining the validity of mandatory arbitration situs clauses.
Publication Name: Franchise Law Journal
Subject: Law
ISSN: 8756-7962
Year: 1997
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