This Agreement is to insure that no dispute or controversy directly or indirectly concerning any matter relating to this Operating Agreement shall become the subject of court action, but that any dispute or controversy shall be presented to an Arbitration Panel, except as specifically set forth in this provision. The decision of the panel shall be final and binding as to all Parties and their privies without the right of appeal.
Puerto Rico Arbitration
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Multi-State
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US-OG-694
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Word;
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FAQ
Act 75 significantly constrains the relationship between a principal and its dealer by turning into a tort the unjustified termination, non-renewal, or impairment of a dealership contract.
A principal may be surprised to learn that, under Art. 2 of Act 75, it may neither terminate nor refuse to renew a dealership upon its expiration, except for ?just cause?. Failure to have just cause entitles the dealer to recover significant damages and penalties from the principal.
Government of Puerto Rico The Civil Code of Puerto Rico followed the model of the Spanish Civil Code since 1890. While it is true that Puerto Rico's legal system developed within the Spanish civil tradition, since the Spanish-American War in 1898, it has been strongly influenced by the U.S. legal system.
The court?following the nativist and xenophobic decisions of more than a century ago?upheld the federal government's exclusion of Puerto Rico from a Social Security benefits program, which will stop more than $2 billion a year from flowing to U.S. citizens living on the Island.
Act 75 prohibits termination or non-renewal of a dealer's contract without ?just cause,? regardless of any contract provision permitting termination.
Puerto Rico laws include the Puerto Rico Constitution, laws passed by the Puerto Rico Legislative Assembly and periodically codified in the Laws of Puerto Rico, and decisions by courts that interpret Puerto Rico laws. Ratified in 1952, the Puerto Rico Constitution contains nine articles.
Puerto Rico's Act 75 of June 24, 1964 was enacted to protect Puerto Rican distributors or dealers from arbitrary terminations to a distribution agreement.
Distribution Law 75 is unique to Puerto Rico; few jurisdictions have enacted similar laws. Law 75 is a patriarchal law that regulates the relationship between principals and on-Island distributors. It creates a complex framework for business and commercial relationships that is unique to Puerto Rico.
