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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
|||| 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
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