Oregon Statutes 650.165 – Prohibited franchise conditions
It shall be a violation of ORS § 650.120 to 650.170 for a franchisor to require a franchisee to agree to the inclusion of a term or condition in a franchise, or in any lease or agreement ancillary or collateral to a franchise, as a condition to the offer, grant or renewal of such franchise, lease or agreement, that:
Terms Used In Oregon Statutes 650.165
- Contract: A legal written agreement that becomes binding when signed.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Trial: A hearing that takes place when the defendant pleads "not guilty" and witnesses are required to come to court to give evidence.
(1) Requires the franchisee to waive trial by jury in actions involving the franchisor.
(2) Specifies the jurisdictions, venues or tribunals in which disputes arising with respect to the franchise, lease or agreement shall or shall not be submitted for resolution or otherwise prevents a franchisee from bringing an action in a particular forum otherwise available under the law.
(3) Requires that disputes between the franchisor and franchisee be submitted to arbitration or to any other binding alternative dispute resolution procedure. However, any such franchise, lease or agreement may authorize the submission of a dispute to arbitration or to binding alternative dispute resolution if the franchisor and franchisee voluntarily agree to submit such dispute to arbitration or binding alternative dispute resolution at the time the dispute arises.
(4) Adversely alters to a substantial degree the rights and obligations of a franchisee under any existing franchise contract. [1989 c.716 § 4; 1999 c.660 § 6; 2007 c.71 § 204]