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Are Exclusive Distribution Agreements Legal

Facts and procedures. Several commercial agreements concluded between 2002 and 2011 combined fashion jewelry manufacturers and a retailer (Auchan). Convinced that these agreements involved false commercial cooperation services, the manufacturers sued the distributor by documents of 27 December 2011 and (…) One topic that is increasingly at the centre of competition authorities` concerns is where suppliers are trying to stop or reduce the sale of their product on the internet. There are only very limited circumstances in which this is possible. In addition, it is generally not possible to prevent a seller from one country or exclusive distribution territory from fulfilling orders placed in another distribution territory, especially when such orders are placed on the Internet. Some of the main clauses that you typically find in an international distribution agreement include products and territories, obligations of the parties, exclusivity clauses, renewal/termination, and dispute resolution. The short answer is: These companies have distribution agreements with Apple. But what is a distribution contract and why should a simple written or oral agreement not be enough? A list of the most important provisions that usually, but not always, appear in distribution agreements: companies involved in anti-competitive behaviour may consider their agreements to be inapplicable and risk being fined up to 10% of their worldwide turnover for particularly harmful behaviour. You may also be exposed to possible actions for damages from customers. Among the subjects to be taken into account in any distribution agreement are: in terms of exclusive distribution, an interesting decision of the Paris Court of Appeal was taken this quarter, which reminds us of the importance of carefully anticipating the end of the contract and the end of the resulting exclusivity obligation. Since 1 June 1995, a supplier (…) Companies involved in anti-competitive behaviour could find that their agreements are not enforceable and risk being fined up to 10% of their global turnover.

Persons operating within the company could also find that they are accused of fraud or criminal convictions for serious infringements of competition law. Given the risks, it is imperative that all agreements be reviewed by experienced competition lawyers. Much of UK competition law comes from EU law. Therefore, Brexit will likely have an impact on how businesses can legally compete with each other, unless a future deal says otherwise. . . .

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