one. Subject to the terms of this exclusive distribution agreement, the supplier designates the distributor and the distributor accepts such a designation and undertakes to act as the exclusive distributor of supplier products (defined below) within the following geographical area (the “territory”): in addition, manufacturers must be aware of their own market position, as certain distribution agreements may theoretically be perfectly legal. they can become illegal when used to maintain an existing market share monopoly, for example. B if, because of its existing agreements, a company can behave independently of other competitors in the market and outside market pressure. When a company with the bulk of its market share includes an exclusive distribution agreement with the company that has the 10 most lucrative distributors, it effectively excludes the competitiveness of other companies. In this case, the standard exclusive distribution contract may be legal, but the situation may be subject to legal and financial measures. From there, the company must examine its markets, pricing and position and decide whether the benefits of a single or exclusive distribution agreement are reasonable for the products it produces and for the business it carries out. It is interesting to note that these rules and regulations represent a real risk for suppliers and distributors, but are less problematic for suppliers and agents (but this remains a reflection), because representatives do act in the supplier`s place. A distributor is a dealer.

The distributor makes a surcharge on the resold products, and the distributor shares a large part of the risk in the products, i.e. their quality. Distributors are often companies that use a network of connections and logistics tools to distribute and sell goods for a variety of businesses. Some traders may focus on a type of good, such. B as women`s clothing, tires or electronics, while other traders can focus on a region, country or market by distributing different types of goods and services and using their focused regional skills to achieve their turnover. Most distributors are always looking for new customers, but also spend significant time rebuilding and updating relationships with long-term customers. It is an agreement that ensures that only a distributor, for a specific region, market, product or other company, has exclusive rights to market that product in that market. An intermediary will also assume much of the responsibility for marketing, promotions and distribution.

These entrepreneurial responsibilities are then assumed by a company that is an expert in these fields and knows the markets, not the manufacturer, which may not have such know-how. However, distributors are expensive and result in an increase in the total price on the product. The theme of customer feedback can be managed by an agreement that creates a multi-functional team between the two companies, in order to provide customer support and technical service, as well as manage important customer information databases such as online reviews, surveys and feedback. For the supplier, it is important to obtain this information, as it can and should influence the development of future products and the management of existing product lines. b) granting rights. The supplier grants the distributor a non-exclusive, non-transferable and revocable right to use trademarks in connection with the marketing, use, sale and service of products in the territory, in accordance with the terms of this Agreement and the guidelines issued from time to time by the Supplier.