Reciprocal Distribution Agreement

Since 1 June 2000, selective distribution has been covered by an EU category exemption regulation. On 20 April 2010, the European Commission published its latest version of the category exemption for distribution agreements, the Commission`s Regulation (EU) 330/2010 and its guidelines1. Restructuring of selective distribution networks has been at the centre of legal news for several years, particularly in the automotive sector, where the non-renewal of a contract is generally difficult for the dealer or workshop to see. The latter rarely hesitates to take legal action (…) Signing a distribution agreement can be exciting and fruitful, but we always recommend it. B consider all options (for example, clauses you need or competitive risks) before locking yourself into such an agreement. A selective distribution agreement is generally used by a supplier to maintain greater control over the resale of its products. In such a system, the supplier undertakes to supply only merchants who meet certain minimum criteria. In return, distributors agree to supply only other distributors that are in the selective distribution system or the authorized end user. The selection criteria used generally require that products be sold only through outlets with a particular image or that the distributor assume specific obligations, such as staff training or after-sales service.

With regard to selective distribution agreements, the key is to achieve a single standard and a consistent quality of service in the outlets where the products are sold. The types of distribution agreements are as follows: the articulation of jurisdictional solutions applied on the basis of general liability law and competition law with regard to the refusal to allow candidates for the network meeting the selection criteria set by the organizer of a selective distribution network remains at the heart of this quarter`s case (…) A supplier may not, once the contract is terminated, directly or indirectly restrict the distributor of the manufacture, purchase or sale of competing goods or services, unless the obligation is limited to a maximum period of one year, is necessary for the protection of know-how and the obligation is limited to the same point of sale from which the distributor acted during the agreement.

Author: daniele130