This form contains a Most Favored Customer Clause, which can be incorporated into license agreements to obligate the licensor to grant the licensee equivalent or better terms than the licensor has granted to any of its past, present and future customers.
Arkansas Most Favored Customer Clause
Category:
State:
Multi-State
Control #:
US-IP1019
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Word;
PDF;
Rich Text
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Description
How to fill out Most Favored Customer Clause?
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FAQ
The most favored nation clause is a term that is given to a certain country, and it implies that the recipient of the favorable treatment must receive equal trade advantages as the most favored nation of a country's trade policy.
Most favoured customer clauses in commercial contracts provide that the supplier will always give the customer its best price and terms. They usually provide that if the supplier gives another customer a better deal then it has to pay the favoured customer the difference.
Most favored nation status (MFN) is given by members of the World Trade Organization (WTO) to other members. This status confers trade benefits to member nations that are not given to others by treating each country as an equal trade partner.
A Standard Clause allowing a buyer to obtain the best possible price on goods or services from a seller by requiring it to provide the buyer with the lowest price among all buyers in that market.
MFN clause means most favored nation clause. It is a clause that is seen used in agreements between two nations. MFN clause provides that one country will treat the other in the same manner as it treats any other nation that is given preferential treatment.
FavouredCustomer Clause (MFC) is a contractual arrangement between vendor and customer that guarantees the customer the best price the vendor gives to anyone.
Antitrust Risks Associated with MFNs. No court analyzing the competitive merits of MFNs, standing alone, has found them to be illegal under any antitrust law.
A Standard Clause allowing a buyer to obtain the best possible price on goods or services from a seller by requiring it to provide the buyer with the lowest price among all buyers in that market.
MFN clauses may also have anti-competitive effects. For example, MFN clauses may reduce the seller's incentive to lower prices to prospective buyers. This will be the case where a significant portion of the seller's sales are already subject to MFN clauses.
By Practical Law Commercial. A specimen anti-bribery and anti-corruption clause for use in contracts for the supply of services (or both goods and services), drafted from the customer's perspective.
