It goes without saying that in the vast majority of cases,
franchising is employed to exploit the products to the enduser
consumers – individuals. As each jurisdiction, as a rule,
has its specific product liability regulations, product liability
issues are among the cornerstones to be considered by franchisors
while capturing new foreign markets; and Ukraine is no exception.
Moreover, the product liability provisions are regarded as
mandatory in Ukraine and shall be complied with regardless of the
governing law chosen and/or applied for specific agreements.
Echoing the above, foreign companies, producing/selling the
products within Ukraine, use every bit of creativity to evade the
relevant requirements of the Ukrainian product liability
regulations (eg, enter into 'simple' supply agreements,
instead of a franchising agreement; stipulate that all product
related risks and responsibilities are transferred to the Ukrainian
party, etc.). However, the said 'tricks' are not
