House Journal: Page 834: Monday, March 20, 2000
34 15. Page 13, line 9, by inserting after the word
35 "supplies," the following: "equipment, fixtures,".
36 16. Page 13, line 10, by inserting after the word
37 "supplies," the following: "equipment, fixtures,".
38 17. Page 13, line 16, by inserting after the word
39 "supplies," the following: "equipment, fixtures,".
40 18. Page 13, line 17, by inserting after the word
41 "supplies," the following: "equipment, fixtures,".
42 19. Page 13, by inserting after line 24 the
43 following:
44 "10A. LIMITED FIDUCIARY DUTY. Without regard to
45 whether a fiduciary duty is imposed generally on the
46 franchisor by virtue of a franchise agreement, the
47 franchisor owes a fiduciary duty to its franchisees
48 and is obligated to exercise the highest standards of
49 care for franchisee interests where the franchisor
50 does any of the following:
Page 3
1 a. Undertakes to perform bookkeeping, collection,
2 payroll, or accounting services on behalf of the
3 franchisee.
4 b. Administers, controls, or supervises, either
5 directly or through any subsidiary or affiliate, any
6 advertising, marketing, or promotional fund or program
7 to which franchisees are required to, or routinely,
8 contribute."
H-1517H
9 20. Page 13, by striking lines 25 through 32 and
10 inserting the following:
11 "11. DUTY OF GOOD FAITH. a franchise imposes on
12 the parties a duty of good faith in performance and
13 enforcement of the franchise agreement. "Good faith"
14 means honesty in fact and the observance of reasonable
15 commercial standards of fair dealing in the trade.
16 The duty of good faith is imposed in situations
17 including, but not limited to, where the franchisor
18 opens a new outlet, location, or channel of
19 distribution that has an adverse impact on an existing
20 franchisee."
H-1517I
21 21. Page 13, by inserting before line 33 the
22 following:
23 " ___. REPURCHASE OF ASSETS. A franchisor shall
24 not terminate or refuse to renew a franchise without
25 fairly compensating the franchisee for the fair market
26 value, at the time of termination or expiration of the
© 2000 Cornell College and
League of Women Voters of Iowa
Comments about this site or page?
hjourn@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Tue Mar 21 13:35:00 CST 2000
URL: /DOCS/GA/78GA/Session.2/HJournal/00800/00834.html
jhf