Székelydálya | Exclusive Distribution Agreement Termination
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Exclusive Distribution Agreement Termination

09 ápr Exclusive Distribution Agreement Termination

The question then arises as to whether the above prohibitions apply to distribution within the meaning of Russian competition law. Following the cancellation of an initial default judgment against the supplier in 2003, the regional court dismissed the appeal in its entirety in November 2014. According to the Landgericht, the termination of the distribution contract did not constitute a violation of the agreement. In January 2016, the Court of Appeal of the canton of Zurich overturned the decision of the district court. The Court of Appeal found that the contract had not been terminated automatically or had not been terminated in accordance with its terms and referred the case to the District Court for review of the breach claims. A distribution agreement allows a distributor to transport or resell products purchased by a manufacturer. The manufacturer supplies the products and the distributor acts as a seller, either as a wholesaler or as a distributor. The distribution agreement may be exclusive, with a single distributor using a manufacturer for a particular product or region. The agreement may also allow several distributors to collaborate with several manufacturers.

The manufacturer generally states the terms of the agreement, including all marketing tactics or product licensing procedures, and the distributor agrees to comply with these conditions. Russian competition law prohibits the setting of minimum or fixed resale prices in distribution agreements (see question 3). However, the maximum resale price can be set. Under Russian law, if the buyer is not aware of any defects in a delivery contract, the buyer has the right to require the supplier that agreements to avoid double taxation can determine other criteria for determining whether a foreign company has permanent representation in Russia. Given the above, it is unlikely that a disclaimer can be imposed by mutual agreement between the supplier and the distributor for the supply of defective goods or services under Russian law. In most cases, the distributor acts as an intermediary between the supplier and the customer only in the economic sense. It remains legally independent because it acts in its own interest and at its own expense and has legal consequences for itself.