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Unformatted text preview: nchise chains to act in “good faith,” a basic tenet of the nation’s Uniform Commercial Code. The bill would also place limits on
encroachment, require “good cause” before a contract can be terminated, permit franchisees to form their own associations, allow them to
purchase from a variety of suppliers, and give them the right to sue franchisors in federal court. “We are not seeking to penalize anyone,”
Coble said, before introducing his plan for franchise reform. “We only seek to bring some order and sanity to a segment of our economy
which is growing and may be growing out of control.” Iowa adopted similar franchise rules in 1992, without driving Burger King or
McDonald’s out of the state. Nevertheless, the IFA and the fast food chains strongly oppose Coble’s bill. The IFA has hired Allen Coffey, Jr.,
the former general counsel of the House Judiciary Committee, and Andy Ireland, a former Republican congressman who was the ranking
member of the House Small Business Committee, to help thwart greater federal regulation of franchising. While in C...
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This note was uploaded on 02/25/2014 for the course MGMT 120 taught by Professor Litt during the Spring '08 term at UCLA.
- Spring '08