Exclusive Distribution Agreements

This agreement is governed by the laws of the [insert name of the country] and is interpreted accordingly without a choice of law or rules of conflict of laws taking effect. The parties accept the [exclusive” or “non-exclusive” jurisdiction and the jurisdiction in the courts to [insert the name of the courts] in the city [insert the name of the city]. Although distribution agreements are generally vertical (i.e. between companies at different levels of the supply chain), they can affect competition between brands and suppliers. Sometimes a distributor can make significant investments in creating and developing a market for a particular product. To justify this investment, the distributor may seek protection from competition from other distributors or even from the supplier itself. These exclusivity agreements can affect EU and UK competition rules and are likely to be banned if they confer absolute protection in an area (e.g. B, part of the United Kingdom or a particular country). Another consideration in the EU context is that agreements that isolate national markets and try to maintain different prices in different Member States can also adopt EU competition rules. A.

Subject to the terms of this exclusive distribution agreement, the supplier appoints the distributor, and the distributor accepts such an appointment and undertakes to act as the exclusive distributor of supplier products (defined below) within the following geographic area (the “territory”): The challenges in a distribution agreement include: This is an agreement that guarantees that a single distributor for a region , market, product or any other specific activity has exclusive rights to distribute this product in this market. One of the issues that is increasingly at the centre of competition authorities` concerns is where suppliers are trying to stop or reduce the sale of their products on the internet. The circumstances in which this is possible are very limited. In addition, it is generally not possible to prevent a seller in one country or exclusive distribution area from executing orders in another distribution area, especially if those orders are placed through the internet. Distribution agreements, especially those that are exclusive, often contain non-competition prohibitions. Such provisions may be permitted by vertical regulation, but there are also restrictions depending on the circumstances.

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