LECTURE No. 55. Dealer agreement. Distributor agreement

1. Dealer agreement

The purpose of the dealer agreement is to create a dealer network in order to promote products that meet the quality requirements of the consumer, to provide warranty and after-sales service to consumers. The dealer acquires ownership of the goods and makes further sale on his own behalf and at his own expense, while independently fulfilling all the rights and obligations of the seller. When choosing dealers, the following factors are taken into account:

1) experience in the sale of products;

2) possession of information about consumers, including their solvency;

3) the ability to perform warranty and service maintenance;

4) the presence of a production base in the region of activity.

Dealers are divided into categories, and depending on this category, they are provided with discounts to the current prices for products.

Dealer Responsibilities:

1) sell products through its own distribution network;

2) not to sell products outside the sales territory;

3) immediately report the facts of falsification of products;

4) take measures to protect the trademark;

5) carry out the purchase of products in the agreed volumes;

6) not sell products of a similar purpose and not represent the interests of a similar organization;

7) provide a report to the distributor once a month;

8) when working in the same region, dealers are required to coordinate the prices for the sale of goods among themselves.

The dealer's liability can be set as:

1) reducing discounts;

2) termination of the dealer's certificate in case of gross violation of the contract (refusal to pay for the volume of products for 2 months without good reason, etc.)

Dealer rights:

1) for the sale of products;

2) to secure territory for the dealer;

3) petitions for changing the scheme of supply of distributor outlets;

4) receive documents and materials of a consultative and promotional nature;

5) to obtain a certificate of a dealer of the established sample.

The dealer agreement is concluded for 1 year and does not contain an automatic extension of the dealership.

2. Distributor agreement

Under a distribution agreement, one person (grantor) grants the rights to distribute goods in a certain territory to another person (distributor). Grantor is a manufacturer, exporter, seller of goods. The distributor is not a consumer of the product, because he buys the product for resale.

A distribution agreement combines elements of an agency agreement, a supply agreement and a commercial concession agreement.

Rights and obligations of the distributor:

1) purchase and sell goods on their own behalf and at their own expense;

2) take over the organization of sales in a certain territory and not create obligations for the manufacturer of products;

3) carry out activities in a certain territory.

The grantor is obliged to provide technical and commercial information, including the transfer of know-how to the distributor, to organize trainings and seminars for the distributor. In addition, when determining the procedure for providing the distributor with products, the grantor is obliged to provide the distributor with the exclusive transfer of rights to sell these goods.

In relation to the participants of the distribution agreement, sanctions may be provided that occur in the event of:

1) non-compliance with the minimum level of sales;

2) sales of products at reduced prices;

3) reduction of the established stock of goods.

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