How To Use
This review list is provided to inform you about the document in question and assist you in its preparation.
- The Manufacturer should be alert to the dangers in establishing any long-term exclusive relationship with a Distributor. This non-exclusive agreement sidesteps most of those issues.
- This agreement creates a non-exclusive right on behalf of the Distributor to market the products in the territory defined by the parties. This is a relatively benign agreement with limited recourse of the Distributor against the Manufacturer.
- Manufacturers still need to also be alert that terminating a Distributor with or without cause, can lead to serious legal charges being brought against the Manufacturer involving everything from the broad category of “good faith” dealing to antitrust claims. This is an area ripe with dangerous legal traps that are different in many states. Before entering into a non-exclusive Distributor Agreement we strongly recommend you consult with a knowledgeable business attorney about the implications in your state and the Distributor’s state regarding such agreements. Having said this, there are far fewer risks associated with a non-exclusive than with an exclusive agreement.
- Print two copies of the Agreement so each party can have a copy that is an original.