Puerto Rico Service Bureau Distribution System Agreement
Description
How to fill out Service Bureau Distribution System Agreement?
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FAQ
Puerto Rico's Act 75 of June 24, 1964 was enacted to protect Puerto Rican distributors or dealers from arbitrary terminations to a distribution agreement.
Anyone engaging in the distribution of another company's product or services usually needs a distribution agreement. While it is generally recommended to have a distribution agreement in place, it is not always a legal requirement.
Many multinational corporations have extended their operations to Puerto Rico by appointing local distributors. Consequently, Law 75 enacted on June 24, 1964 aggressively protects local distributors from distribution agreement termination without just cause.
Act 75 prohibits termination or non-renewal of a dealer's contract without ?just cause,? regardless of any contract provision permitting termination.
Act 75 significantly constrains the relationship between a principal and its dealer by turning into a tort the unjustified termination, non-renewal, or impairment of a dealership contract.