LEX VINI

A Closer Look at BCG’s Franchise Law Study

The Boston Consulting Group (BCG) recently released a study finding that the U.S. beer market is “open, freely competitive and driven by consumer choice.” BCG concludes its study by imploring lawmakers to be “skeptical of complaints (legal or otherwise) that the marketplace favors only large players.”  In other words, BCG appears to argue that regulators should maintain […]

FTC Criticizes Franchise Laws…in Automobile Industry

“Regulators should differentiate between regulations that truly protect consumers and those that protect the regulated.” So concluded the Federal Trade Commission in a recent blog post criticizing franchise laws in the automobile industry. Tesla Motors, a leading manufacturer of high-end electric cars, implemented a sales model to allow it to sell cars direct to consumers. […]

Federal Court Dismisses Diageo’s Complaint in Franchise Law Case

Earlier this week, Missouri distributor Major Brands, Inc. won the most recent round in its year-long franchise law litigation with Diageo Americas, Inc. The federal district court in Connecticut has dismissed Diageo’s complaint, and the parties dispute appears to be gearing up for a trial in Missouri state court this summer. Last March, Diageo brought […]

Update on The Battle of Missouri and Franchise Distribution Law

On June 20, a Missouri Circuit Court judge issued one of the first judicial rulings in a battle that could dramatically affect the relationship between producers and distributors of alcohol. In Missouri, Diageo PLC, Bacardi Ltd., and Pernod Ricard SA are all lobbying to end the state’s franchise laws.  These laws, which ten other states […]

Franchise Laws and Diageo’s Recent Distributor Termination Action in Missouri

Ohio,New Jersey,North Carolina,Virginia, and a number of other states restrict a winery’s ability to terminate distributors in that state through “franchise laws.” The Virginia Wine Franchise Act, for example, prevents a winery from unilaterally amending, cancelling, terminating or refusing to renew anyVirginia distribution agreement absent good cause, and good cause is very narrowly defined.  A […]