AGENT V' DISTRIBUTORSHIP - PowerPoint PPT Presentation

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AGENT V' DISTRIBUTORSHIP

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D. takes title. D. receives any profit from the sale. Risk of being unable ... Labor laws may not apply but local agency laws may provide similar protections ... – PowerPoint PPT presentation

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Title: AGENT V' DISTRIBUTORSHIP


1
AGENT V. DISTRIBUTORSHIP
  • AGENT
  • (A.)
  • A. does not have title to the goods
  • A. usually paid salary or commission
  • Risk remains with manufacturer
  • A. generally cannot bind manufacturer
  • DISTRIBUTORSHIP (D.)
  • D. takes title
  • D. receives any profit from the sale
  • Risk of being unable to sell passes to D.
  • D. does not act on behalf of manufacturer - only
    resells its goods

2
AGENT V. DISTRIBUTORSHIP
  • AGENT
  • (A.)
  • Agency law may be extensive
  • Arrangement may not be subject to antitrust laws
  • A. may be required by local law
  • Agent may be required to be a host country
    national
  • DISTRIBUTORSHIP (D.)
  • Less legal control over manufacturer
  • Likely to be subject to antitrust laws
  • D. probably not preferred by local law
  • Distributor may be required to have majority
    local ownership

3
AGENT V. DISTRIBUTORSHIP
  • AGENT
  • (A.)
  • Manufacturer likely able to set retail price
  • Agent likely cannot appoint sub-agents
  • Labor laws may not apply but local agency laws
    may provide similar protections
  • DISTRIBUTORSHIP (D.)
  • Manufacturer likely not able to set the retail
    (resale) price
  • Distributor likely can appoint sub-agents
  • Local labor laws do apply

4
AGENT V. DISTRIBUTORSHIP
  • AGENT
  • (A.)
  • A. might subject manufacturer to local
    jurisdiction
  • Manufacturer able to control where product is sold
  • DISTRIBUTORSHIP (D.)
  • D. less likely to subject manufacturer to local
    jurisdiction
  • Manufacturer may not be able to control sales
    territory
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