Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 18 JULY 2020

Set Your Own Terms: Implied Reasonable Notice In Open Distribution Arrangements

McCarthy Tétrault
McCarthy Tétrault
Contributor
McCarthy Tétrault

McCarthy Tétrault

Built on a unique model of collaboration, innovation and efficiency, McCarthy Tétrault delivers...

View firm profile
Explore more from McCarthy Tétrault

A recent British Columbia decision highlights the risk of having long-term, unwritten arrangements in place with exclusive sales agents and distributors.

CanadaEmployment and HR
Consumer Markets Perspectives
Consumer Markets Perspectives
Adam Ship
Adam Ship
Author LinkedIn connections

A recent British Columbia decision highlights the risk of having long-term, unwritten arrangements in place with exclusive sales agents and distributors.

In Meridian Distribution Ltd. v. Endeavor Design Inc.1, a supplier terminated a long term exclusive distribution relationship without providing advance notice. There was no written agreement that defined the term of the relationship and the Court found that the common law required a reasonable period of notice given the "more permanent character" of the relationship.2 The distributor was awarded damages which represented the nine month period that the Court found was the required "reasonable notice".  

Facts

The dispute arose when a supplier of snowboards and snowboard accessories terminated a nine year exclusive agreement with a sporting goods distributor.3

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Tariffs, Terminations And EI: Implications Of Canada’s New Support Package For Employers

Canada's federal government has announced a $3.5 billion rapid response support package in anticipation of retaliatory tariffs against the United States, introducing new temporary employment insurance measures and workforce retention programs. The package extends EI benefits, waives waiting periods, and creates funding opportunities for employers to retain and retrain workers rather than implement large-scale layoffs.
CanadaEmployment and HR
Siskinds LLP
Siskinds LLP
Article

WorkSafeBC Proposes Changes To Laws Regarding Workplace Harassment And Violence

WorkSafeBC is proposing significant amendments to British Columbia's Occupational Health and Safety Regulation that would fundamentally reshape how employers address workplace harassment, violence, and psychological health. The proposed changes introduce expanded definitions, new prevention program requirements, and obligations to identify and control psychosocial hazards. These amendments could require most B.C. employers to substantially revise their existing workplace policies and procedures.
CanadaEmployment and HR
Cassels
Cassels
Article

Unsubstantiated Findings In Workplace Investigations: What To Do When You Can’t Decide

When workplace investigators face difficult decisions, many default to marking allegations as "unsubstantiated" to avoid risk. However, this seemingly safe approach carries significant organizational costs, undermines complainant trust, and often stems from insufficient training in credibility assessment and the balance of probabilities standard.
CanadaEmployment and HR
RT Workplace Training & Consulting Inc.
RT Workplace Training & Consulting Inc.
Article

Silva v. Royal Bank Of Canada: A Cautionary Tale About Terminating For Cause

A financial planner's wrongful dismissal case against RBC resulted in over $2.5 million in damages after the bank filed an inaccurate termination notice that destroyed her career prospects. The Ontario Superior Court found the bank's conduct vindictive and its allegations of cause unproven, raising critical questions about employer obligations when reporting terminations in the investment industry.
CanadaEmployment and HR
Affleck Greene McMurtry LLP
Affleck Greene McMurtry LLP
Article

Gloves Off: Canada Answers U.S. Section 338 Tariffs Dollar-for-Dollar As Washington Escalates With Import Bans

Canada and the United States have entered a new phase of trade conflict, with Canada implementing retaliatory surtaxes on C$27.6 billion of U.S. goods while the United States escalates beyond tariffs to outright import prohibitions on Canadian alcohol, dairy products, and motorcycles. The dispute now extends into government procurement policy, raising questions about compliance strategies and supply chain restructuring as both nations tighten customs enforcement.
CanadaInternational Law
McCarthy Tétrault
McCarthy Tétrault
Article

Federal Government Removes Certain Energy Projects From The Impact Assessment Act Project List

The Canadian government has removed seven types of energy projects from federal impact assessment requirements, shifting review responsibilities to the Canada Energy Regulator and provincial processes. This regulatory change affects pipelines, electrical transmission lines, oil sands facilities, and power plants, fundamentally altering how major energy infrastructure projects will be evaluated and approved across Canada.
CanadaEnvironment
McCarthy Tétrault
McCarthy Tétrault
Article

Canada Commits To Airport Privatization Through Long-Term Concessions For Its Four Largest Airports

The Canadian federal government has announced a firm commitment to privatize operations at the country's four largest airports through long-term concessions, marking a decisive shift from earlier exploratory discussions. Prime Minister Mark Carney revealed that while the government will retain ownership of airport lands and assets following the Australian leased-airport model, private investment will be sought to operate Toronto Pearson, Vancouver, Montreal-Trudeau, and Calgary international airports.
CanadaTransport
McCarthy Tétrault
McCarthy Tétrault
Article

FITAA Is Now In Force: What Organizations Need To Know About Canada's New Foreign Influence Registry

Canada's Foreign Influence Transparency and Accountability Act (FITAA) establishes a comprehensive registration regime for arrangements with foreign principals involving influence activities related to Canadian political or governmental processes. Organizations across sectors—including businesses, NGOs, universities, and industry associations—must assess whether their existing or proposed arrangements trigger registration obligations, with significant administrative and criminal penalties for no
CanadaInternational Law
McCarthy Tétrault
McCarthy Tétrault
Article

Changing Lanes: Canada Proposes To Replace Its ZEV Sales Mandate With Technology-neutral Emission Standards

Canada is proposing to eliminate its federal zero-emission vehicle sales mandate and replace it with technology-neutral greenhouse gas emission standards. The shift comes amid declining EV sales, affordability concerns, and trade uncertainty with the United States, raising questions about how the automotive industry will balance climate goals with market realities. What will this regulatory transformation mean for manufacturers, consumers, and Canada's electrification timeline?
CanadaEnvironment
McCarthy Tétrault
McCarthy Tétrault