Sole distribution agreements in the context of the general principles of free trade and competition

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Abstract

Amongst the main concerns for producers is how to get their product to market. Therefore, the system of distribution chosen is vital to commercial success, considering the resources invested in the development and production of the product. In considering the most effective method of bringing the product to market, cost-effectiveness aside, a producer would be faced with two options: to perform distribution within the firm, or to outsource. There may be occasions where the best option may be to outsource the function where the producer wishes to market his product abroad and finds it more viable to use the services of another who is more familiar with the intended market conditions, the product may need some degree of specialist knowledge, or where it may be more cost-effective not to distribute himself or to incur additional costs of supplying a large number of distributors. Here, the producer has a number of options: appointing an agent, appointing a franchisee, using technology licensing, or using an independent distributor.
Original languageEnglish
JournalSyracuse Journal of International Law & Commerce
Volume35
Issue number1
Publication statusPublished - 2007

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markets
cost effectiveness
free trade
methodology

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title = "Sole distribution agreements in the context of the general principles of free trade and competition",
abstract = "Amongst the main concerns for producers is how to get their product to market. Therefore, the system of distribution chosen is vital to commercial success, considering the resources invested in the development and production of the product. In considering the most effective method of bringing the product to market, cost-effectiveness aside, a producer would be faced with two options: to perform distribution within the firm, or to outsource. There may be occasions where the best option may be to outsource the function where the producer wishes to market his product abroad and finds it more viable to use the services of another who is more familiar with the intended market conditions, the product may need some degree of specialist knowledge, or where it may be more cost-effective not to distribute himself or to incur additional costs of supplying a large number of distributors. Here, the producer has a number of options: appointing an agent, appointing a franchisee, using technology licensing, or using an independent distributor.",
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AB - Amongst the main concerns for producers is how to get their product to market. Therefore, the system of distribution chosen is vital to commercial success, considering the resources invested in the development and production of the product. In considering the most effective method of bringing the product to market, cost-effectiveness aside, a producer would be faced with two options: to perform distribution within the firm, or to outsource. There may be occasions where the best option may be to outsource the function where the producer wishes to market his product abroad and finds it more viable to use the services of another who is more familiar with the intended market conditions, the product may need some degree of specialist knowledge, or where it may be more cost-effective not to distribute himself or to incur additional costs of supplying a large number of distributors. Here, the producer has a number of options: appointing an agent, appointing a franchisee, using technology licensing, or using an independent distributor.

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