SEPTEMBER 2008

IN THIS ISSUE

Please Select an Article to Read

• Australian Law Reform Commission’s Privacy Report – Health Update
• Special Commission of Inquiry into NSW Public Hospitals releases its First Report
• Pharmacists and Franchising
• Accessing funds in the current market environment
• Aged Care Update
• Amendments to the NSW Medical Practice Act introduce compulsory reporting of doctors for sexual misconduct, substance abuse and incompetent clinical practice
• Case note: Peer evidence as to competent medical practice
• Proposed changes to general requirements for labelling of medicines
• Windfall for Medical Insurers in Medical Malpractice Cases
• Protecting Root Cause Analysis in NSW private health facilities
• Case Note: Court Of Appeal reversal on Domestic Assistance Threshold under Civil Liability Act
• New procedures for Medical Negligence Claims in the NSW Supreme Court
• IVF Donors to lose anonymity under new legislation in New South Wales

 

Pharmacists and Franchising

In view of the large number of pharmacies operating under franchise arrangements, a case currently on appeal to the High Court may have important consequences for the pharmacy profession.

The case of Master of Education Services Pty Ltd v Ketchell, decided in the Supreme Court of New South Wales last year, emphasised the importance of making full disclosure to franchisees. In this case the franchisor’s failure to obtain written confirmation that the franchisee had read and understood the Disclosure Document and Franchise Agreement resulted in termination of the agreement. Consequently, all fees outstanding under the Franchise Agreement, such as the management and royalty fee, did not have to be paid to the franchisor. This decision has significant repercussions for pharmacy franchisors and franchisees, requiring a vigilant approach to disclosure in order to ensure the agreement remains enforceable.

The decision has since been the subject of an appeal to the High Court. The decision which is expected to be handed down in the next few months will be of great consequence for Australian franchise law and will shape the interpretation of the Franchising Code of Conduct. We will keep you posted of any further progress with this case and its implications for both franchisors and franchisees.

Written by Robert Gardini, Partner