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.
Vermont Most Favored Customer Clause
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US-IP1019
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How to fill out Vermont Most Favored Customer Clause?
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FAQ
FavouredCustomer Clause (MFC) is a contractual arrangement between vendor and customer that guarantees the customer the best price the vendor gives to anyone. The MFC prevents a company from treating different customers differently in negotiations.
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.
Most-Favored-Nation Clause Explained For example, if a country belonging to the WTO reduces or eliminates a tariff on a particular product for one trading partner, the treaty's MFN clause obligates it to extend the same treatment to all members of the organization.
Most-Favored Nations (MFN) clauses (also known as antidiscrimination clauses or most-favored customer clauses) are common in business today. These provisions require that the supplier will treat a particular customer no worse than all other customers (and sometimes even better).
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.
Favored nations clauses are relatively simple to describe: they are a contractual commitment that no other relevant party will receive better (or more advantageous) terms from the party making the commitment.
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.
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.
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.
The most favoured nation (MFN) principle is based on the idea that countries should treat all their trade partners equallythat no one country should be more favoured. It means no country should give special treatment to goods or services coming from one particular trading partner.
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