Issue 8 — New Laws and Regulations
Manitoba Franchise Legislation Comes Into Effect The Canadian province of Manitoba’s new franchise laws, The Franchise Act and Franchises Regulation, came into effect on October 1, 2012. Manitoba now joins Ontario, Alberta, Prince Edward Island and New Brunswick among Canadian provinces requiring pre-franchise agreement disclosures. Details about Manitoba’s franchise law were discussed in our previous issue. Changes to Ohio’s Business Opportunities Law Changes to Ohio’s business opportunities law became effective September 28, 2012. Senate Bill No. 196 broadens the definition of “business opportunity plan” to include plans purchased with an initial payment up to $100,000, as opposed to the previous… Read more
Recent Cases — September 2012
Forklift Dealer Held to be a Missouri Franchise A federal district court ruled that a forklift dealer’s relationship with its manufacturer constituted a “franchise” under the meaning of the Missouri Merchandising Practices Act (the “MMPA”), and that the manufacturer had violated the MMPA by failing to give the dealer only 22 days’ notice of termination, instead of the statutorily mandated 90 days’ notice. In arriving at its decision, the court noted that a written agreement between the dealer and manufacturer granted the dealer a “nonexclusive privilege to identify itself as an Authorized Dealer, and to display, in the conduct of… Read more