An exclusive distribution clause prevents the supplier from forming other distribution contracts in a given market or territory. This gives the distributor the exclusive right to sell the products in that region. Exclusivity might be provided contingent on the distributor's performance.
The Company represents and warrants that no other person or entity has any rights to sell and promote the Company's products or services, including those products or services listed in Attachment A (the “Products”) hereto, within the Exclusive Territory in derogation of the rights granted to the Exclusive Distributor ...
As discussed in the Fact Sheets on Dealings in the Supply Chain, exclusive contracts between manufacturers and suppliers, or between manufacturers and dealers, are generally lawful because they improve competition among the brands of different manufacturers (interbrand competition).
In terms of content, an Estate distribution letter should include: the deceased's personal details; a detailed and complete list of all assets and liabilities; the Beneficiary names and the details of their respective inheritances; any details on debt settlement and creditor communication;
The term for Distribution Agreements varies, with terms being anywhere from 5 to 15 years. I try to limit the term as much as possible—especially when there is no advance, or a meager one.
Exclusivity clauses are generally enforceable when they are properly drafted. Federal law typically permits exclusivity clauses in contracts, as do most state laws. Specific restrictions may be imposed depending on the nature of your contract, what services you provide, and the terms of the agreement.
Although some claims under Sherman Act, Section 1 are per se illegal under the antitrust laws, exclusive dealing is not. Instead, courts analyze these claims under the rule of reason. That means that the court won't allow any shortcuts.
Thus, the question of whether a distributorship contract is governed by the UCC will depend on the exact nuances of the contract. To determine whether the UCC applies, “courts generally examine the transaction to determine whether the sale of goods predominates.” Princess Cruises v. GE, 143 F. 3d 828, 833 (4th Cir.