Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Court Watch

By Susan H. Morton and David W. Oppenheim
March 01, 2004

Failure to Register Franchise in Illinois Renders Franchise Agreement Invalid

The Appellate Court of Illinois has affirmed a lower court decision ruling that a franchise agreement including its arbitration provisions was not binding on the franchisee because the franchisor sold the franchise in Illinois without registering its UFOC with the Illinois Attorney General's Office. The arbitration provision of the franchise agreement was therefore unenforceable. Jensen v. Quik International, 801 N.E.2d 1124 (Ill. App. Ct. 2003).

On July 3, 2002, Jensen entered into a franchise agreement with Quik International (“Quik”) that granted Jensen the right to operate a franchise in Illinois. The franchise agreement provided that all disputes between the parties would be submitted to binding arbitration. Sometime after the agreement was signed, Quik advised Jensen that its sale of the franchise to him was in violation of the Illinois Franchise Disclosure Act (“IFDA”) because Quik's franchise registration had expired at the time of the sale. Quik advised Jensen that he had the right to rescind the franchise agreement and/or sue for damages.

Read These Next
Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

Legal Possession: What Does It Mean? Image

Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.

Removing Restrictive Covenants In New York Image

In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?