This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
The South Carolina Contract between Manufacturer and Distributor Regarding Minimum Advertised Price is a legal agreement that outlines the terms and conditions between a manufacturer and a distributor regarding the minimum price at which products can be advertised. This contract ensures fair competition within the market and prevents price-cutting practices that may harm the manufacturer's brand image or disrupt the market equilibrium. The contract typically includes the following key provisions: 1. Parties involved: The contract specifies the names and addresses of the manufacturer and distributor entering into the agreement. 2. Purpose: The contract clarifies that it is executed to establish guidelines for the minimum advertised price (MAP) that the distributor can advertise the manufacturer's products. 3. Product information: The contract identifies the specific products or product lines covered under the agreement, including any limitations or exclusions. 4. MAP definition: The contract defines the minimum advertised price, which is the lowest price at which the distributor can advertise the products either online, in print media, or through any other public advertising platform. 5. Enforcement of MAP: The contract outlines the methods by which the manufacturer will monitor and enforce compliance with the MAP. This may include periodic audits, reporting mechanisms, or penalties for non-compliance. 6. Resale price maintenance: The contract clarifies that the MAP is not intended to establish a minimum resale price, rather it governs the advertised price to protect the manufacturer's brand image. 7. Price adjustments: The contract addresses circumstances where the manufacturer may adjust the MAP, such as changes in production costs, market conditions, or product updates. 8. Contract duration and termination: The contract specifies the duration of the agreement and conditions for termination. It may include provisions for automatic renewal or termination rights for both parties. Types of South Carolina Contracts between Manufacturer and Distributor Regarding Minimum Advertised Price: 1. Exclusive MAP Contract: This type of contract grants exclusive distribution rights to a specific distributor within a defined territory. The distributor becomes the sole entity authorized to advertise and sell the manufacturer's products, ensuring control over pricing and brand representation. 2. Non-Exclusive MAP Contract: In this type of contract, the manufacturer allows multiple distributors to sell and advertise their products at or above the designated MAP, encouraging active competition while still maintaining price integrity. 3. MAP Policy Agreement: Unlike a contract, a MAP policy agreement is a unilateral statement issued by the manufacturer that specifies the minimum advertised price for their products. Distributors are not required to sign this agreement, but they are expected to adhere to the pricing guidelines outlined to maintain a positive relationship with the manufacturer. In conclusion, the South Carolina Contract between Manufacturer and Distributor Regarding Minimum Advertised Price is a vital legal document that establishes the terms and conditions for advertising and promoting products within the state. By ensuring fair competition and protecting the manufacturer's brand image, this contract contributes to a balanced and healthy marketplace.
