For the 4th year running, the firm Simon Associés has published a " Panorama de jurisprudence " compiling the main laws, articles, decisions and other essential legal and judicial events that caught their attention during 2017, in distribution law and franchise law.
Among the topics discussed, a few caught our attention:
Obligation to ensure compliance with contractual territorial exclusivity
Cass. com., June 8, 2017, appeal no. 15-26.755
The head of a distribution network is obliged to ensure that theterritorial exclusivity granted is respected, and his or her failure to put an end to the violation of territorial exclusivity is likely to result in liability and the award of damages.
The price paid by franchisees to their central purchasing agency
90 Cass. com., March 29, 2017, appeal no. 15-25.742
The price paid by franchisees to their central purchasing agency is a nagging question, often fuelled by the same (inadequate) argument: the franchisor is at fault because it would be possible to find cheaper elsewhere. But it's important to compare like with like.
FRG and business secrecy
Cass. com., June 8, 2017, appeal no. 15-27.146
When the franchisor is the distributor's agent in negotiations with suppliers, he cannot be required to reveal the content of the negotiations he has conducted with suppliers, which is a matter of business secrecy.
Nullity and termination of the contract: burden of proof on the franchisee
CA Paris, January 25, 2017, RG n°14/23222
A franchisee seeking to have a contract declared null and void due to the franchisor's failure to provide pre-contractual information must demonstrate that the information withheld vitiated the franchisee's consent. A franchisee seeking termination of the contract for failure by the franchisor to meet its contractual obligations must demonstrate the reality of the franchisor's breaches.
The Free Trade Agreement between the European Union and Canada (known as "CETA")
Signed on October 30, 2016
After more than five years of negotiations, the member states of the European Union signed the free trade agreement with Canada, known as CETA ("Comprehensive Economic and Trade Agreement") on October 30, 2016 despite the reservations of the Parliament of Wallonia (Belgium). The CETA must now be ratified at European level, as well as by national parliaments and the Canadian Parliament to come into force. This comprehensive economic agreement between the European Union and Canada is designed to boost trade, strengthen economic relations and encourage investment. Key elements include
- Boosting trade between the European Union and Canada
- Strengthening access to Canadian public procurement markets
- Strengthening regulatory cooperation
- Liberalizing services and opening up investment
- The creation of a permanent tribunal
To access the full 2017 case law panorama click on the following link: Network newsletter - Simon Associés
