Posted by Elizabeth Gore-Jones
on 23 September 2016
The ACCC issued a media release on 22 September, 2016 advising they have instituted proceedings against a franchisor and its former director for failing to comply with the Franchising Code of Conduct.
The Franchisor in question is Morlid Pty Ltd which is the franchisor for the Pastacup franchise system.
The Code requires a director of a franchisor to outline its relevant business experience. The ACCC alleges the director failed to disclose that he had been a director of...
Posted by Elizabeth Gore-Jones
on 19 September 2016
The new unfair contract terms taking effect from 12 November 2016 will apply to standard form contracts.
A contract will be taken to be a standard form contract unless the other party can establish to the contrary.
In determining if a contract is a standard form contract, the court must take into account:
1. Whether one (1) party has most of the bargaining power;
2. Was the contract prepared by one (1) party before any discussions were entered into by the parties;
3. Wa...
Posted by Elizabeth Gore-Jones
on 13 September 2016
Unfair contract terms may be void if they are found to be unfair from 12 November 2016.
From that date Section 23(1) of the Australian Consumer Law will provide that a term of a consumer contract or small business contract will be void if the term is unfair and the contract is a standard form contract.
This will no doubt apply to many franchise agreements.
The main purpose of the provision appears to be to remedy any perceived imbalance of bargaining power.
Franchisors shou...
