National Electronic Distributors Association Distribution Agreement

Facts and procedures. In April 2007, the American company Stanley Assembly Technologies (SAT), a company of the Stanley Black and Decker Group, and the Spanish company Euro Herramientas (EH) signed a contract to distribute Stanley products in Spain and Portugal for a period of one year, (…) By decision of 16 March 2020, the Competition Authority (`FCA`) fined the Apple Group (“Apple”) 1.1 billion euros for (i) implementing a series of vertical competition restrictions within its distribution network and (ii) the Economic Commission (…) A balance in a distribution contract ensures that neither party has unfair power over the other. Both sides should have the opportunity to denounce the agreement under similar conditions. If one party can terminate the contract with a 60-day period without penalty, the other party should have the same option. The health crisis and its consequences have had a direct impact on the trade agreements that have just been signed by 2020 between distributors and the food companies that supply them. This situation has led suppliers to think about the various legal mechanisms that (…) Facts and procedures. Several trade agreements between 2002 and 2011 involved fashion jewelry manufacturers and a retailer (Auchan). Convinced that these agreements contained false commercial cooperation services, the manufacturers sued the distributor with means of reflection of 27 December 2011 and (…) Fourth, ask the distributor or supplier with whom you can negotiate an agreement to obtain a blind copy of two or three agreements that are currently in effect. You do not need to know the names of the parties in the agreement; You are just looking for a feeling of what is considered normal. Inexperienced parties in distribution agreements sometimes try to minimize the possibility of termination.

The requirement for an annual termination and a semi-automatic extension is a routine procedure among experienced players. In these cases, the agreement provides for a provision requiring termination of the contract at the end of the first full calendar year after the agreement enters into force and each year after the agreement enters into force. The terms and conditions allow each party to submit a letter of intent that will not be renewed 30 days before the end of the calendar year.

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