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• W202171078 abstract "The preparation of contracts in the field of franchising1 is every day becoming more complex, and, as a result, traps for the unwary abound. Recent cases illustrate how two elements, both usually unforeseen, can lead to disastrous results. The first element involves the multijurisdictional franchising agreement.2 In such an agree? ment, a manufacturing company has identified a particular individ? ual or corporation that appears to be able to assist the manu? facturer in penetrating particular marketing regions, such as the Eastern Seaboard or Central America, the Caribbean, and South America, and enters into an agreement for the market? ing and distribution of its products in those areas in a single agreement. The agreement is executed in the home office of the manufacturer, and the franchisee is located in one of the many states (or countries) where the agreement is to be implemented. The agreement specifies that it is to be con? strued and interpreted in accordance with the law of the state of residence of the manufacturer. Everyone has read Bremen,7, and many have concluded that the freedom in a private contract to choose the law applicable to the relationship and the venue for suit is broad enough to encompass what the manufacturer is attempting in this situation. Unfortunately, Bremen has a clear exception: the parties cannot choose a law to govern a contract that is in derogation or contravention of a strong public policy of the state seeking to protect its citizens.4 Dealer protection statutes are specifically the type of leg? islation that has invoked the exception to Bremen. In many states, the matter is clear: A choice of law provision that is in contravention of the public policy of the state with the great? est relationship to the controversy (usually the franchisee state) will not be honored if that state has a franchising statute in effect. Thus, anyone preparing a franchising agree? ment has to be prepared for the unfortunate eventuality that his choice of law provision will not be respected, even if suit is brought in the forum whose law was chosen to apply.5 Consequently, the worst case usually occurs, and the man? ufacturer is sued in the domicile of its franchisee,6 or in a jurisdiction that is part of the region for which the franchise was granted, and which has a very strong franchise protection law.7 The choice of law is disregarded, and the strong fran? chising law is applied to cover the entire relationship. Thus," @default.
• W202171078 created "2016-06-24" @default.
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• W202171078 date "2016-01-01" @default.
• W202171078 modified "2023-09-27" @default.
• W202171078 title "Extraterritorial Application of State Law" @default.
• W202171078 hasPublicationYear "2016" @default.
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