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The Pubs Code etc. Regulations 2016

Draft Legislation:

This is a draft item of legislation and has not yet been made as a UK Statutory Instrument. This draft has been replaced by a new draft, The Pubs Code etc. Regulations 2016 ISBN 978-0-11-114748-1

Reasonable terms and conditions

This section has no associated Explanatory Memorandum

31.—(1) Paragraph (2) applies where—

(a)a tied pub tenant is subject to a tenancy granted by the pub-owning business; and

(b)the tenant gives an MRO notice.

(2) The terms and conditions of the proposed MRO-compliant tenancy sent under regulation 29(3)(b) or 33(2) are to be regarded as unreasonable for the purposes of section 43(4) of SBEEA 2015 (tenancy or licence which is MRO-compliant) if they—

(a)insert into the tenancy a break clause which is exercisable only by the pub-owning business;

(b)impose a service tie in respect of insurance other than buildings insurance in connection with the premises to which the tenancy relates; or

(c)are terms which are not common terms in agreements between landlords and pub tenants who are not subject to product or service ties.

(3) Where—

(a)a tied pub tenant is subject to a licence granted by the pub-owning business; and

(b)an MRO notice is given,

the terms and conditions of the proposed MRO-compliant licence granted by the pub-owning business under regulation 29(3)(c) or 33(2) are to be regarded as unreasonable for the purposes of section 43(4) of SBEEA 2015 if they impose a service tie in respect of insurance other than buildings insurance in connection with the premises to which the licence relates.

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