Unconscionability in the Law and Practice of Franchising

This study examined the operation of unconscionability in the law of franchising and the nature of existence of unconscionability in practice of franchising. Franchising is relatively a new branch of commercial law and practically opened to various forms of abuses by the franchisors and franchis...

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Main Author: Mohd Ishan, Zahira
Format: Thesis
Language:English
English
Published: 2008
Subjects:
Online Access:http://psasir.upm.edu.my/id/eprint/6921/
http://psasir.upm.edu.my/id/eprint/6921/1/GSM_2008_3.pdf
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author Mohd Ishan, Zahira
author_facet Mohd Ishan, Zahira
author_sort Mohd Ishan, Zahira
building UPM Institutional Repository
collection Online Access
description This study examined the operation of unconscionability in the law of franchising and the nature of existence of unconscionability in practice of franchising. Franchising is relatively a new branch of commercial law and practically opened to various forms of abuses by the franchisors and franchisees. Meanwhile, unconscionability has a rather uncertain scope within the general sphere of contract law. It is therefore, important to also identify the true nature of franchising, the development of unconscionability and its relationship with the relevant contractual theories and other doctrines or notions, the probabilities of unconscionable practices in franchising and the totality of the whole spectrum of the idea of unconscionability from the legal perspectives. Applying the qualitative approach by means of inductive reasoning using the historical research method, this study found that franchising resulted from the commercial practices or conveniences rather than any legal tradition. It is multidimensional in nature, which incorporates, among other, the concept of contract law, a notion of licence and some features of usufruct. Unconscionability is the most proper doctrine to deal with the abuses and unfair practices that occur in franchising. In fact, there are probable occurrences of unconscionable practices in franchising in Malaysia based on the empirical studies of actual cases. As unconscionability is still evolving and the formulation of another parameter could still be contemplated, a new parameter is proposed in this research whereby the broad doctrine of unconscionability encompasses fairness, good faith, fair dealing and undue influence, while inequality of bargaining power and honesty in certain circumstances become the supporting factors in proving unconscionability. From this research, it is concluded that unconscionability is the situation whereby the contract is entered into, negotiated and obtained. As the contract is a bargain, when the bargain is unconscionable it becomes unconscionable bargain. Unconscionability is an essential doctrine in the law of contract and the formulation of the new parameters of unconscionability in the contract law is also applicable to the law of franchising. The parameters can assist in promoting conscionability in the franchise business environment locally and internationally.
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spelling upm-69212023-11-21T02:12:54Z http://psasir.upm.edu.my/id/eprint/6921/ Unconscionability in the Law and Practice of Franchising Mohd Ishan, Zahira This study examined the operation of unconscionability in the law of franchising and the nature of existence of unconscionability in practice of franchising. Franchising is relatively a new branch of commercial law and practically opened to various forms of abuses by the franchisors and franchisees. Meanwhile, unconscionability has a rather uncertain scope within the general sphere of contract law. It is therefore, important to also identify the true nature of franchising, the development of unconscionability and its relationship with the relevant contractual theories and other doctrines or notions, the probabilities of unconscionable practices in franchising and the totality of the whole spectrum of the idea of unconscionability from the legal perspectives. Applying the qualitative approach by means of inductive reasoning using the historical research method, this study found that franchising resulted from the commercial practices or conveniences rather than any legal tradition. It is multidimensional in nature, which incorporates, among other, the concept of contract law, a notion of licence and some features of usufruct. Unconscionability is the most proper doctrine to deal with the abuses and unfair practices that occur in franchising. In fact, there are probable occurrences of unconscionable practices in franchising in Malaysia based on the empirical studies of actual cases. As unconscionability is still evolving and the formulation of another parameter could still be contemplated, a new parameter is proposed in this research whereby the broad doctrine of unconscionability encompasses fairness, good faith, fair dealing and undue influence, while inequality of bargaining power and honesty in certain circumstances become the supporting factors in proving unconscionability. From this research, it is concluded that unconscionability is the situation whereby the contract is entered into, negotiated and obtained. As the contract is a bargain, when the bargain is unconscionable it becomes unconscionable bargain. Unconscionability is an essential doctrine in the law of contract and the formulation of the new parameters of unconscionability in the contract law is also applicable to the law of franchising. The parameters can assist in promoting conscionability in the franchise business environment locally and internationally. 2008-04 Thesis NonPeerReviewed text en http://psasir.upm.edu.my/id/eprint/6921/1/GSM_2008_3.pdf Mohd Ishan, Zahira (2008) Unconscionability in the Law and Practice of Franchising. Doctoral thesis, Universiti Putra Malaysia. Law and legislation - Malaysia Franchises (Retail trade) - Law and legislation English
spellingShingle Law and legislation - Malaysia
Franchises (Retail trade) - Law and legislation
Mohd Ishan, Zahira
Unconscionability in the Law and Practice of Franchising
title Unconscionability in the Law and Practice of Franchising
title_full Unconscionability in the Law and Practice of Franchising
title_fullStr Unconscionability in the Law and Practice of Franchising
title_full_unstemmed Unconscionability in the Law and Practice of Franchising
title_short Unconscionability in the Law and Practice of Franchising
title_sort unconscionability in the law and practice of franchising
topic Law and legislation - Malaysia
Franchises (Retail trade) - Law and legislation
url http://psasir.upm.edu.my/id/eprint/6921/
http://psasir.upm.edu.my/id/eprint/6921/1/GSM_2008_3.pdf