The procedural decisions at the threshold of dispute resolution

Article Abstract:

Franchisors and franchisees in dispute have the choice of arbitration or litigation to remedy the situation but numerous decisions face both parties before this occurs. Arbitration is usually specified by the franchise agreement and is considered preferable because of its flexibility. Litigation requires considerations such as whether to file under federal or state laws, where to file if the two entities are in separate states and whether or not to seek a jury trial. Most of these choices should be considered before completing the franchise agreement.

Analysis, Dispute resolution (Law)

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Choice of law: a new paradigm for franchise relationships

Article Abstract:

Franchise agreements' choice of law provisions should be applicable in contract-based claims situations, but deemed irrelevant in tort-based actions. Courts could then apply the most appropriate choice of law rules, tailored to specific claims' connection to franchise relationships. Courts can avoid inconsistent decisions by employing this paradigm to distinguish non-contractual claims arising from disclosure and registration laws from contractual claims arising from franchise relationship laws.

Conflict of laws

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The FAA on a collision course with the unconscionability doctrine

Article Abstract:

The California Court of Appeal's decision in Bolter v. Superior Court creates conflict with the Federal Arbitration Act. The Court of Appeal decided that an out-of-state forum selection clause in a franchising contract made the contract unconscionable. This decision could confuse the issues of unconscionability and federal preemption.

United States, California, Laws, regulations and rules, Exclusive and concurrent legislative powers, Preemption (Legislative power), Commercial arbitration agreements, Contracts, Unconscionable, Unconscionable contracts

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