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© 2004 West Legal Studies in Business A Division of Thomson Learning

Laws Governing Franchises

Governed by commercial sales and contract law.  If franchise is primarily for the sale of goods, UCC Article 2 governs.  

State and federal laws regulate franchising to protect franchisee.

The contract states parties’ rights and duties and can include an exclusive “territory” to market goods/services.  

Case 35.1: Bixby’s Food Systems v. McKay (2002).

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