At the turn of the nineteenth century, Napoleon redrew the map of Europe. He suspended all the laws in France that preceded the revolution. He replaced them with a series of codes or simple, clear legal frameworks, giving men total power over women; removing any political power that religions may previously have wielded; defining the laws of things, such as property, along with the rules governing its transfer. The third section covers succession and contracts, listing valid forms of agreement. The code also defines obligations and contracts. It dumped a lot of hard-fought revolutionary principles, not least womens’ rights. It was not until well into the twentieth century that some of these were restored.
The Code de la Commerce established the principle that it should be illegal to sell at a loss. Article L 442-5 has been the object of extensive discussion and attempted modifications ever since, as people have looked for ways round it. When Sarkozy came to power in 2007 there was a determined effort to redraw the political landscape of the French economy. La loi de modernisation de l’économie (LME) was an administrative bulldozer, which slashed payment terms for invoices, setting a new ceiling at 60 days and easing planning requirements for small (less than 1,000 square metres) retail premises. In among the debris was the legislative wreckage of article 442-5.
The parliamentary passage of the LME was a baptism of fire for a novice parliamentarian at the time, Bruno Le Maire. His first major legislative task was a sea change for the economy. He also succeeded in making annual buying reviews for retailers and their suppliers a passage through purgatory by reversing the buying cycle. In previous years, suppliers would deliver goods through the year and meet at the start of the next year to discuss terms for the coming year. With a year’s worth of sales data to hand, suppliers were in a position to offer retailers end-of-year bonuses for specific listings and stay in business. Under Le Maire’s system, suppliers are expected to guarrantee a price for the coming 12 months, field demands for promotional stock and stay in business to do it all again the following year.
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