Consumer Protection Policy for Franchisees of Failed Franchisors

2008 Franchise Law Colloquium, Bond University and UNSW, Gold Coast, Queensland, Australia

UNSW Australian School of Business Research Paper No. 2009 BLAT 02

30 Pages Posted: 29 Jan 2009 Last revised: 4 Feb 2009

Jenny Buchan

UNSW Australia Business School, School of Taxation and Business Law; University of New South Wales

Date Written: November 20, 2008

Abstract

Over time, society's needs and expectations have led to franchisees being recognised as a new category of consumer and, since 1998, as a 'business consumer' under section 51AC Trade Practices Act 1974 (Cth) (TPA). In Part I of this paper, consumer policy objectives are identified, particularly in so far as they relate to franchisor failure. Three specific areas of the TPA are briefly explored in Part II for their potential as avenues of redress for franchisees of failed franchisors. They are; section 51AC, in relation to unconscionable conduct, the Franchising Code of Conduct (enacted under section 51AE, TPA), and sections 69 to 74H in relation to warranties implied into contracts for purchase of goods or services.In Part III some of the 'elephants in the room are introduced. It is concluded that whilst rehabilitation rather than vilification now awaits failed business people, the consumer protection law is yet to respond to the needs and expectations of franchisees of failed franchisors.

Keywords: business consumer, franchisee, Trade Practices Act, Australia, unconscionable conduct, policy, law, franchisor fail

JEL Classification: G33, K20, M13, M55

Suggested Citation

Buchan, Jenny, Consumer Protection Policy for Franchisees of Failed Franchisors (November 20, 2008). 2008 Franchise Law Colloquium, Bond University and UNSW, Gold Coast, Queensland, Australia; UNSW Australian School of Business Research Paper No. 2009 BLAT 02. Available at SSRN: https://ssrn.com/abstract=1333811 or http://dx.doi.org/10.2139/ssrn.1333811

Jennifer M. Buchan (Contact Author)

UNSW Australia Business School, School of Taxation and Business Law ( email )

Room 2041
QUAD Building
Sydney, New South Wales
Australia
+61293851458 (Phone)

HOME PAGE: http://www.asb.unsw.edu.au/schools/Pages/JennyBuchan.aspx

University of New South Wales ( email )

Level 2, Quadrangle Building
Australian School of Business
Sydney, NSW 2052
Australia
+61 2 93851458 (Phone)

Paper statistics

Downloads
82
Rank
243,570
Abstract Views
753