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This entry was published on 2014-09-22
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SECTION 394-D
Privity of contract between franchise seller and customer or patron of dealer
General Business (GBS) CHAPTER 20, ARTICLE 26
§ 394-d. Privity of contract between franchise seller and customer or
patron of dealer. a. Any contract for instruction in physical and social
skills, or for the use by an individual patron of a dance hall studio,
ballroom, gymnasium, or other physical or social training facility which
requires payment by the person receiving such instruction, or the use of
such physical or social training facilities, between such patron and a
franchised dealer shall be enforceable by the patron against the
franchise seller either in requiring specific performance of the
contract or in holding said franchise seller responsible for damages for
a breach thereof.

b. For the purposes of this section, a "franchise seller" is an
individual, partnership or corporation which sells to a dealer the right
to use a certain name, reputation, process or course of instruction
owned by it and which the dealer will make available to individual buyer
or patron for a consideration or fee.

c. For the purposes of this section a "dealer" is an individual,
partnership or corporation which contracts with a franchise seller to
obtain and use the product of the franchise seller for the purpose of
using, selling or making it available to an individual buyer or patron
for a consideration or fee.

d. For the purposes of this section a "customer", "individual" or
"patron" is a person who agrees to and contracts for a course of
instruction in physical and social skills, or for the use of a dance
hall studio, ballroom, gymnasium or other physical or social training
facility.