SPAIN: Agency and distribution agreements – arbitral clause – validity and enforceability.

THAI AIRWAYS (principal) and TOP AIRWAYS (agent) signed an exclusive agency agreement in 1987 with the intention to promote the selling of airplane tickets in a specific territory in Spain and Andorra. The agreement contained an ICC arbitration clause. According to TOP, both companies also agreed a verbal distribution contract according to which TOP sold […]

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EU: European General Court rules on selective distribution in relation to EU antitrust rules.

The judgement was given in an appeal brought by the European confederation of watch repairers’ associations (CEAHR) against a July 2014 decision of the European Commission regarding a complaint by the CEAHR against a restriction imposed by luxury watch manufacturers on their authorized repairers to supply independent non-authorized repairers. The ECG considered that the aim […]

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INDIA: Introduction of Goods and Service Tax Act and implications on supply chain and distribution in India.

GST is a single tax on the supply of goods and services, which applies to all levels of the supply chain that is from manufacturers to the final consumer of the product. The GST also includes the introduction of the government rewarding credit to the purchaser as “input” tax paid on each stage of the […]

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KUWAIT: The Executive Regulation for Law no. 13 of 2016 to the Kuwait Commercial Agencies Law.

The Executive Regulation (“Regulation”) aims to arrange, clarify and sets out certain requirements and formalities to be followed in order to maintain and efficiently implement the provisions of the CAL by the concerned parties. This paper provides the reader with a brief summary of some of the key elements and main features of the Regulation. […]

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IRAQ: New Commercial Agency Law and Implications for Multinational Companies.

Iraq’s Old Commercial Agency Law Iraq followed in the legislative footsteps of many Arab countries by passing its first commercial agency law with Law No. 51 of 2000 (the “Old Law”). The Old Law supplemented existing civil and commercial codes to create a legal framework for the registration of Iraqi businesses as the commercial agents […]

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EU: The Coty Judgment on selective distribution systems and the prohibition to sell through internet platforms.

This judgment constitutes an important step towards a clarification of the compatibility of selective distribution agreements with the EU rules on competition, with particular reference to luxury products sold on the internet. In particular, the Court rejected the position expressed by a number of national courts and antitrust authorities according to which the Pierre Fabre […]

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SPAIN: Four interesting case law on agency and distribution contracts.

Agency agreements: contract for a fixed period which continues to be performed after the termination. Article 24 of the Spanish Agency Act foresees that in case an agency agreement continues to be performed after its expiry, it will be transformed into an agreement with indefinite duration. In a case ruled by the Provincial Court of […]

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NETHERLANDS: Dutch Court adopts Advocate General Wahl’s opinion regarding bans on sales through online platforms.

Facts The relevant facts of the case are, briefly summarized, as follows: NEON is responsible for the distribution of the Nike products in Europe; Action Sport Soc. Coop, A.R.L. (“Action Sport”) is a sports products retailer in Bagheria, Sicily (Italy); Action Sport ordered the Nike products for the purpose of resale in its brick and […]

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Poland: New law on counteracting the use of unfair contract advantage when trading food and agricultural products.

The purpose of this law is introducing an administrative way of combatting unfair practices (alternative to the private i.e. judicial one). The Act applies to the relationships between the supplier of the agricultural products and their distributors, provided that the total annual turnover between the said contractors exceeds PLN 50,000 (about EUR 12,000) and/or that […]

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SPAIN: Two judgements on goodwill compensation in agency agreements.

Agency agreements: Termination by the Agent due to unilateral modifications by the principal does not prevent from receiving clientele compensation. The Provincial Court of Zaragoza has ruled a judgement in June 13, 2017 (414/2017 rec. 165/2017) regarding the termination of the agency agreement by an agent who received unilateral modifications by the Principal In October […]

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NORWAY: Agreements for compensation on termination.

In the Webasto case (Supreme Court decision HR-2014-00306-A) analogous application of the rules regarding commercial agent [1] was rejected. The Supreme Court did not completely close the door for compensation – with a comment that the courts might look differently on matters of a “special nature,” where denying the right to compensation would be “unreasonable”. There […]

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SAUDI ARABIA: Draft Franchise law 2017.

From a regulatory perspective, franchises have been subject to the requirements of the Saudi Commercial Agencies Regulations (promulgated by Royal Decree M/11 of 1382H. [1969G.], as amended), in particular the registration requirement.   After many years of discussion, the Saudi Ministry of Commerce and Investment (MCI) recently published draft Franchise Regulations in January 2017 and […]

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SWEDEN: The Court of Appeal rejects analogous application of the Swedish Act on Commercial Agency for indemnity claim.

Following 17 months’ contractual relationship, the supplier Weststar Sales AB terminated an oral cooperation agreement with Mion AB regarding sales of eatables with one month prior notice. Arguing it had been acting as a commercial agent, Mion claimed an indemnity according to the provisions of the Swedish Act on Commercial Agency. Weststar Sales rejected the […]

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DENMARK: Kickback System in distribution agreements resulted in fine.

The Kickback System The case concerned distribution agreements between Olympus Denmark, manufacturing cameras, and its independent distributors. The agreements contained a kickback system under which Olympus Denmark repaid a cash amount of the distributors’ purchase price to the distributors when (re)selling specific camera models at specific minimum prices. If the distributors (re)sold these cameras at […]

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U.S.A.: Trump administration and Republican Controlled Congress and State Legislatures Signal change in rush to find franchisors are joint employers of franchisees’ employees.

In August, 2015, the NLRB decided a case involving Browning-Ferris Industries (BFI), revising its joint employer standard and holding that because BFI had the right to control certain aspects of a subcontractor’s employment practices, even if those rights were not exercised, it should be considered a joint employer with the subcontractor.  Although the case did […]

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