King Computer v. Beeper Plus

In King Computer v. Beeper Plus (SD NY, Mar. 8, 1993) Judge Patterson determined that a franchise contract offered by a franchisor who failed to register a prospectus with the Department of Law was void and unenforceable. The court reasoned that inasmuch as the regulatory purpose of the Franchise Sales Act was to protect franchisees from fraud or incompetence, " 'the public interest in the enforcement of contracts is clearly outweighed by the public policy behind the regulation.' " ( King Computer v. Beeper Plus, 24, supra.)