Background
Resale price maintenance and territorial restraints terms are
common in distribution agreements between producers (or suppliers)
and their distributors. Recently, many of our clients have enquired
whether distribution agreements containing such territorial or
resale price restraints are considered vertical monopoly agreements
and how companies can achieve business objectives of restricting
the resale price and sales territory of distributors within the
law. Mr. Qiu cites relevant statutes and practices and gives a
brief analysis on the above issues to provide useful suggestions
for companies facing such problems.
I. Nature of distribution agreements
In general, a distribution agreement is a legal agreement
between a producer (supplier) and a distributor of goods and the
distributor sells the goods provided by the producer or supplier in
his own name. Such an agreement falls into the category of vertical
agreements concluded between business operators
