Business Law

Directive of July 25, 1985 on liability for defective products (the “Directive”) has introduced a strict liability regime under which producers/manufacturers are liable for damage caused by the defectiveness of their products. To enforce this strict liability regime, the aggrieved person is required to prove the defect, the damage and the causal relationship between the […]

In two decisions dated March 3, 2015, the Commercial Chamber of the Cour de Cassation (French Supreme Court) ruled for the first time on the application by the trial judges of the concept of significant imbalance in the parties’ rights and obligations under Article L. 442-6, I, 2° of the French Commercial Code. It results […]

According to an established French and Community case-law, a parent company that owns all or substantially all of the shares of its subsidiary is presumed jointly and severally liable for the anticompetitive practices implemented by the latter. This presumption can, however, be rebutted if the parent company is able to demonstrate that its subsidiary has […]

Article L. 442-6 I 5e of the French Commercial Code (the “FCC”) punishes the sudden breach of an established business relationship and sets forth the public policy principle that the terminating party is liable in tort, a principle from which the contractual parties may not derogate.  Yet, nothing prevents the parties from contractually agreeing on […]

The Court of Justice of the European Union has recently issued a decision that could significantly increase the financial consequences that the members of a cartel are likely to bear. The Court held that the members of a cartel may, in certain circumstances, be ordered to provide compensation for the loss suffered by the client […]

French legal provisions applicable to sudden breaches of established business relationships are frequently applied in the framework of cross-border disputes between French and foreign companies, irrespective of which company is the terminated or the terminating party. By a decision rendered on May 20, 2014 in relation to a dispute between French companies and their Dutch […]