Distribution is more than resale (buy and resell the product for profit), whereby there are additional obligations by manufacturer and distributor.
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Examples
- Branding
- Customer relation
- Controls, e.g. regulate retail price and curb parallel import
- Outsourcing
- Regional support in technical matter and regulatory affairs
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In the agreement, there are several terms and conditions
(1) goods purchase and service support term, e.g.
- terms of delivery
- reject defective product
- limit of liability
- obligation on distributor
(2) distribution agreement
