Distribution and Franchise Disputes

by Gerald Saltarelli

Abstract:

Manufacturers and other sellers of goods and services reach their markets through a variety of means, including distributor agreements, contracts with sales representatives, and franchise relationships.  Disputes between the manufacturer/seller/franchisor, on the one hand, and the distributor/sales representative/franchisee, on the other, are frequently subject to arbitration under the relevant contracts.  The stakes in these disputes are high, as they often involve the survival of the distributor or franchisee as a going concern.  This article describes common characteristics of distribution controversies, remedies that may be available, advantages of using arbitration, and relevant considerations in drafting the arbitration clause.

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