2003 Legislation
Print Friendly

HOUSE BILL NO. 324 – Franchise agreements, right to sue

HOUSE BILL NO. 324

View Daily Data Tracking History

View Bill Text

View Statement of Purpose / Fiscal Impact



Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Daily Data Tracking History



H0324.............................................................by EDUCATION
FRANCHISE AGREEMENTS - Amends existing law to provide that any condition,
stipulation or provision, including any choice of law provision, purporting to
bind any person, who at the time of entering into a franchise agreement is a
resident of this state, or in the case of a partnership, limited liability
company or corporation, organized or incorporated under the laws of this
state, or purporting to bind a person entering into a franchise agreement with
respect to a franchise to be operated in this state, to waive compliance with
Section 29-110, Idaho Code, or which has the effect of waiving compliance with
Section 29-110, Idaho Code, is void.
                                                                        
03/04    House intro - 1st rdg - to printing
03/05    Rpt prt - to Bus

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 324
                                                                        
                                   BY EDUCATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO FRANCHISE AGREEMENTS; AMENDING SECTION 29-110, IDAHO CODE, TO PRO-
  3        VIDE THAT ANY CONDITION, STIPULATION OR PROVISION, INCLUDING ANY CHOICE OF
  4        LAW PROVISION, PURPORTING TO BIND ANY PERSON, WHO AT THE TIME OF  ENTERING
  5        INTO  A FRANCHISE AGREEMENT IS A RESIDENT OF THIS STATE, OR IN THE CASE OF
  6        A PARTNERSHIP, LIMITED LIABILITY  COMPANY  OR  CORPORATION,  ORGANIZED  OR
  7        INCORPORATED  UNDER THE LAWS OF THIS STATE, OR PURPORTING TO BIND A PERSON
  8        ENTERING INTO A FRANCHISE AGREEMENT WITH RESPECT  TO  A  FRANCHISE  TO  BE
  9        OPERATED  IN  THIS  STATE,  TO WAIVE COMPLIANCE WITH SECTION 29-110, IDAHO
 10        CODE, OR WHICH HAS THE EFFECT OF WAIVING COMPLIANCE WITH  SECTION  29-110,
 11        IDAHO CODE, IS VOID AND TO CLARIFY APPLICATION.
                                                                        
 12    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 13        SECTION  1.  That  Section  29-110, Idaho Code, be, and the same is hereby
 14    amended to read as follows:
                                                                        
 15        29-110.  LIMITATIONS ON RIGHT TO SUE -- FRANCHISE  AGREEMENTS.  (1)  Every
 16    stipulation  or  condition  in  a  contract,  by  which  any  party thereto is
 17    restricted from enforcing his rights under the contract by the usual  proceed-
 18    ings  in  the ordinary tribunals, or which limits the time within which he may
 19    thus enforce his rights, is void.
 20        (2)  Any condition, stipulation or provision, including any choice of  law
 21    provision,  purporting  to bind any person, who at the time of entering into a
 22    franchise agreement is a resident of this state, or in the case of a  partner-
 23    ship,  limited  liability  company  or  corporation, organized or incorporated
 24    under the laws of this state, or purporting to bind a person entering  into  a
 25    franchise  agreement with respect to a franchise to be operated in this state,
 26    to waive compliance with this section or which has the effect of waiving  com-
 27    pliance with this section is void.
 28        (3)  The  provisions of subsection (2) of this section shall not limit the
 29    scope or effect of subsection (1) of this section to all contracts.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE
                                
                           RS 13101C1
                                

Most franchise agreements include non-negotiable terms which
control where a dispute must be litigated and which state's laws
will apply.  Many franchise agreements adopt provisions forcing
Idaho parties to litigate their disputes in another state, under
the laws of the other state or the non-negotiable terms of the
contract.

This legislation will allow Idaho residents to litigate their
disputes in Idaho under Idaho law.


                         FISCAL IMPACT
None.
     

     
Contact:  Doug Vollmer
          (208) 420-5650
          Con Paulos
          (208) 324-3900
          Bill Kyle
          (208) 734-5505
          J. Walter Sinclair
          (208) 387-4248
          Rep. Sharon Block
          (208) 332-1000
          


STATEMENT OF PURPOSE/FISCAL NOTE            H 324