N.Y. General Business Law 394-D – Privity of contract between franchise seller and customer or patron of dealer
§ 394-d. Privity of contract between franchise seller and customer or patron of dealer. a. Any contract for instruction in physical and social skills, or for the use by an individual patron of a dance hall studio, ballroom, gymnasium, or other physical or social training facility which requires payment by the person receiving such instruction, or the use of such physical or social training facilities, between such patron and a franchised dealer shall be enforceable by the patron against the franchise seller either in requiring specific performance of the contract or in holding said franchise seller responsible for damages for a breach thereof.
Terms Used In N.Y. General Business Law 394-D
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
b. For the purposes of this section, a "franchise seller" is an individual, partnership or corporation which sells to a dealer the right to use a certain name, reputation, process or course of instruction owned by it and which the dealer will make available to individual buyer or patron for a consideration or fee.
c. For the purposes of this section a "dealer" is an individual, partnership or corporation which contracts with a franchise seller to obtain and use the product of the franchise seller for the purpose of using, selling or making it available to an individual buyer or patron for a consideration or fee.
d. For the purposes of this section a "customer", "individual" or "patron" is a person who agrees to and contracts for a course of instruction in physical and social skills, or for the use of a dance hall studio, ballroom, gymnasium or other physical or social training facility.