Authorized Dealer Law
An authorized dealer runs his own business, by means of which he sells on his own behalf products of another entrepreneur or supports its sales. In most cases a dealer contract is structured as a so-called framework contract and legally qualified as a mixed contract, containing elements of different types of contracts. The dealer may not use a name of a manufacturer and is often allowed by the manufacturer to sell its products within a protected territory as a sole distributor. A typical example of the dealer is a motor vehicle dealer.
As a rule, the dealer contract is concluded for a long term. The dealer directs its activities to the distribution of the manufacturer’s products and is a part of its sales network. The dealer is therefore highly dependent on the manufacturer company. Often there are so-called sales bonds, on the grounds of which the dealers may be required, for example, to carry out certain advertising or to purchase minimum quantities. Because of the special relationship of dependency of the dealer such a contract results in certain trust obligations that the manufacturer must undertake in favour of the dealer. According to the case law, under certain circumstances there may be even a compensation claim of the dealer in the case of termination. This is a type of compensation claim, which may be entitled to the dealer, for example, if the latter has succeeded to create a large customer base. In this way, the increase in value which the manufacturer has acquired through the work of the dealer will be compensated to the latter.
The Commercial Code, HGB, contains no specific regulations that would give precise legal boundaries to the profession of the dealer. Therefore, as it was once established, provisions of the German Commercial Code concerning a commercial agent in many cases are applied accordingly to protect the dealer.
So it is advisable to consult a lawyer who is familiar with the case law and can give you advice concerning problems within a dealership agreement. The lawyers of GRP Rainer, active in commercial law, are the right contact person in this case. Our firm consists of a team of experienced and highly motivated lawyers who can answer any questions in the field of the dealership.
In the field of dealer law many things depend on well-drafted and carefully designed dealer contracts. The GRP Rainer lawyers have advanced knowledge in this field. We work out dealer contracts for you that will meet your needs and will verify existing contracts on their lawfulness. Even when problems arise within the dealer contract, the lawyers of GRP Rainer are ready to assist you. We examine what claims you are entitled to under the contract, and will contact an opposite party on your behalf. For this, we provide you with a lawyer from our firm, who will present your interests comprehensively and with dedication, whether in court or out of court.
The lawyers of GRP Rainer are the right contact person in all matters regarding dealer law.