Law and Business Review of the Americas
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Law and Business Review of the Americas VOLUME 20 WINTER 2014 NUMBER 1 TABLE OF CONTENTS SYMPOSIUM ISSUE 2014 ARTICLES Franchising in the United States Honey V. Gandhi .......................................... 3 Franchise Legislation in Canada Jeffrey P. Hoffman ........................................ 25 Opportunity for US-Based Franchises in Mexico: Legal Overview and Potential Pitfalls Lorelee P. Dodge .......................................... 55 Franchising in Argentina: Challenges for the Foreign Franchisor Gustavo M. Papeschi ...................................... 71 Update: Franchising in Brazil Kitty McGahey ............................................ 95 Franchise Law in Chile: Current Issues and Future Outlook Guillermo Carey, Tim R. Samples, and Paulina Silva ...... 107 CASE NOTE Australia’s Updated Franchise Code of Conduct: Does an Express Obligation of Good Faith Benefit the Franchisor or Franchisee? Natalie Sears .............................................. 121 UPDATES Two Down, Eleven to Go: Creating a Canadian SEC or Something Like It John J. Kappel ............................................. 133 Brazil’s Landmark Anti-Corruption Law Michelle Richard .......................................... 141 American Trade News Highlights for Winter 2013: Costco Cashews-How Much Roasting Makes Them American for Purposes of NAFTA Preferential Tariff Treatment by Canada? Vanessa Humm ............................................ 149 Editorial and Submission Policies: should ensure that the significance of a con- tribution would be apparent to readers This journal is a quarterly, professional outside the specific expertise. Special terms peer-reviewed publication produced by the and abbreviations should be clearly defined Southern Methodist University Dedman in the text or notes. School of Law’s International Law Review Accepted manuscripts will be edited, if Association (and its Law Institute of the necessary, to improve the journal’s effec- Americas), as well as the Section of Interna- tiveness of communication. If editing tional Law and Practice of the American should be extensive, with a consequential Bar Association). The journal relies on the danger of altering the meaning, the manu- ongoing cooperation of the SMU School of script will be returned to the author for ap- Business, the SMU Departments of Eco- proval before type is set. Alternatively, the nomics and Political Science, and the manuscript may be returned to the author London Forum of International Economic to address the deficiencies. In all events, the and Financial Law at the Centre for Com- editors reserve the right, after discussion mercial Law Studies at Queen Mary Col- with the author, to change its acceptance de- lege, University of London. cision, or to move a publication from one is- Aims and Publication Policy: sue to a later or earlier issue. The editors will not accept unsolicited student-written This journal addresses the legal, business, submissions, nor will they consider articles economic, political and social dimensions of or reports that have been, or are to be, pub- Western Hemispheric integration efforts lished elsewhere, or materials prepared for (e.g., NAFTA, FTAA, MERCOSUR, etc), one’s clients or business promotion. their implementation, their future evolve- Manuscripts submitted for publication ment and expansion, and their overall im- should be submitted in duplicate with a pact on doing business in the Americas. cover letter summarizing the contents to: The journal will combine practical and pol- icy implications of these integration Editor-in-Chief processes. As such, it will cover not only LAW AND BUSINESS REVIEW OF THE AMERICAS matters of immediate concern and interest, Southern Methodist University but also matters respecting reform of legal, Dedman School of Law business, economic, political and social P.O. Box 750116 structures (including human rights, gender, Dallas, Texas 75275-0116 labor, and environmental issues) within the [email protected]. various countries in the Western Hemi- At the time the manuscript is submitted, sphere. Subject matter concerning other re- written assurance must be given that the ar- gional integration efforts in the world and ticle has not been published, submitted, or various other comparative topics in the in- accepted elsewhere. The author normally ternational trade and investment areas will will be notified of acceptance, rejection or also be addressed, from time to time. need for revision within 8-12 weeks. However, topics of particular concern to Manuscripts may range from 6,000 to the journal will include: (1) free trade, direct 10,000 words (approximately 20-30 pages in investment, licensing, finance, taxation, la- length). However, longer articles are ac- bor, environmental, litigation and dispute cepted based upon topic, quality, and space resolution, and organizational aspects of availability. The title of the article should NAFTA and other specific integration ef- begin with a word useful in indexing and in- forts and their specific implementation. For formation retrieval. Text and endnotes practical reasons, English is used as the lan- should be double-spaced. All endnotes guage of communication; (2) subject matter should be numbered in sequential order, as involving economic, legal, political and so- cited in the text. Unless for good reason ac- cial integration, and reform effects in Latin ceptable to the editors, endnotes for legal and Central America and in the Caribbean articles should conform to The Bluebook, Basin; and (3) FTAA implications. Uniform System of Citation (18th ed, 2005; Article Submission: online version 2008). For non-legal articles, the citations should be internally consistent The editors will consider for publication within the given article. Authors should manuscripts by contributors from any coun- submit short biographical data, including his try. Articles will be subjected to a profes- or her affiliation; an abstract summarizing sional peer-review procedure. Authors the manuscript (not to exceed 150 words). ISSN 1571-9537 THE INTERNATIONAL LAW REVIEW ASSOCIATION An Association of The International Lawyer and Law and Business Review of the Americas SOUTHERN METHODIST UNIVERSITY DEDMAN SCHOOL OF LAW 2013-2014 STUDENT EDITORIAL BOARD BROOKS CASTON President The International Lawyer Law and Business Review of the Americas MAX METZLER KENDAL PAYNE SARAH WILSON JOHN FAUBION Editor-in-Chief Managing Editor Editor-in-Chief Managing Editor Associate Managing Editors JENNIFER ARNEL BRYAN ASSINK ALLIE SHOWALTER ROBINSON SAMMY TRAKHTENBROIT HEATHER VENRICK Contents Editor Case Note & Comment Editors Senior Note & Comment Editor TYLER HOKANSON RYAN GRANEY JACOB BERGMAN KATY JOHNSON ALEX PRESCOTT ALLIE SHOWALTER ROBINSON Canada Reporter NAFTA Reporter Year-In-Review Editors JOHN KAPPEL VANESSA HUMM JENNIFER ARNEL BRYAN ASSINK Latin America Technology Citations Administrative Reporter Editor Editors Managing Editor MICHELLE RICHARD BRAD WILLIAMS BRYAN ASSINK HELEN HUTTON JAKE BROWN RACHEL MICHAELWICZ Articles Editors MICHAEL ANDREWS MICHAEL HEWITT SOO NAM ZACH BURNETT KIRSTEN JENSEN CODY PERLMETER MOIRA CHAPMAN RACHEL KAKURES KELSEY POLLARD LAUREN CHASE KAITLIN KAUFMANN PHILLIP POOL FIDAA ELAYDI LYNDA MAJOR NICOLAS SHEMIK COURTNEY EUDY ANNE MORETTI RACHEL THEBEAU JAMES ‘JT’ GAGE ADAM TUNNELL Staff Editors ALEX ALLEN MICHAEL HANSON AUSTIN MERCER DARYOUSH BEHBOOD ANDREW HATCH ANNABEL PEDRAZA JAMIE BROOKS JODY LYNN HOLM IAN ROSS PHILLIPS CHRISTOPHER CORNELL KRISTEN JACKSON SAM PONDROM LAUREN CROUCH JACOB JOHNSON LEV PRICHARD JACOB CRUMRINE CHRISTINA KEARNEY NATALIE SEARS KATHLEEN CRUZ BRYANNA KROUGH CLAYTON SMITH JASMINE CULPEPPER DIVYESH LALLOOBHAI JOHN SMITHEE JERI LANE D’AURELIO JANET LANDRY BARBARA STAFFORD GREGORY FIJOLEK SAMER LAWAND BEN STEPHENS COURTNEY FLOYD JUSTIN LEE ANGEL TORRES MASHHOOD GHASSEMI TYLER LIVINGSTON MAI TRAN NEERAJ GILANI DANIEL LUNSFORD JEFFREY VETETO ANTHONY GODFREY ANN MARTIN STEPHANIE VITIELLO ROXANNE HAJIKHANI LESLIE MCCOMBS JORDAN WYNN DAMIEN HAKERT JIBRAEEL ZAIDI TALIBRA FERGUSON Administrative Assistant —Editorial Base— Southern Methodist University Dedman School of Law Dallas Law and Business Review of the Americas Honorable Editor-in-Chief PROFESSOR ROBERTO MACLEAN President, SMU – LIA Co-Editors-in-Chief JOSEPH J. NORTON DIEGO C. BUNGE SMU-Dallas UBA-Buenos Aires Associate Editors-in-Chief MAURICIO BAQUERO-HERRERA MARTIN L. CAMP MARCOS AURELIO´ P. VALADAO˜ Colombia SMU-Dallas Brasil —BOARD OF SENIOR PROFESSIONAL EDITORS— RODRIGO OLIVARES-CAMINAL OMAR GARCIA-BOLIVAR JORGE A. GONZALEZ London Washington D.C.-Caracas Dallas ROSARIO SEGOVIA-HEPPE GABRIEL GARI ANTONIO PENA˜ LAWRENCE B. PASCAL SMU-Dallas London-Montevideo Miami SMU-Dallas CHRISTOPHER MALCOLM VIRGINIA TORRIE GERARDO VASQUEZ´ COMEZ´ West Indies Toronto Mexico City NARA PORTO CLAUDIA CARBALLAL-BENAGLIO Dallas-Brasil Mexico-Dallas —SMU FACULTY ADVISORY BOARD— Chair LUIGI MANZETTI (POLI.SCI.) GAIL M. DALY (LAW) GEORGE MARTINEZ (LAW) THOMAS OSANG (ECON.) CHRISTOPHER H. HANNA (LAW) MICHAEL LUSTIG (POL.SCI.) MARC I. STEINBERG (LAW) JOHN S. LOWE (LAW) DANIEL J. SLOTTJIE (ECON.) PETER WINSHIP (LAW) —ADVISORY BOARD— —ABA Representatives— Chair GLENN P. HENDRIX Canadian International Investment & International Trade Committee Development Committee Committee JOHN W. BOSCARIOLI JEAN PAUL CHABANEIX KRISTY L. BALSONEK MARCELA B. STRAS DANIEL MARIN MORENO MATTHEW ROBERT NICELY AMY STANLEY Latin American & Caribbean International Corporate Counsel Mexico Committee Committee Committee