Distributors

News & Analysis as of

Local Wholesaler-Retailer Dispute Has Federal Implications

On August 14, the U.S. District Court for the Southern District of Mississippi issued an opinion finding that state regulations bolstered one antitrust claim and hindered another in an ongoing dispute between a northern...more

Dealing With Shipping Companies: A Consistent Challenge for Manufacturers/Distributors

One of the most important things for a manufacturer/distributor is ensuring that its products are shipped in a reliable fashion so they arrive on time and in good condition. Similarly, manufacturers rely heavily on shipping...more

DC Circuit Ruling Confirms Reasonableness Of Resellers Relying On TAA Certifications From Suppliers

The U.S. Court of Appeals for the District of Columbia Circuit has issued a ruling bringing to an end the long-running False Claims Act (“FCA”) case filed by relator Brady Folliard and providing useful guidance to resellers...more

The Global Anti-Corruption Perspective - Q3 2014

TOP 10 TIPS FOR COUNTERING SMALL BRIBES - The issue of so-called facilitation payment’ and other small bribes is a thorn in the side of many international businesses. Not only is it difficult to do business in many...more

Third parties: 4 FCPA takeaways for working with distributors

There is a growing appreciation that companies can be held liable for the actions of third parties under the FCPA and other anti-corruption laws. In this article, we highlight four key challenges and related “cures” for...more

Protecting Trade Secrets During Business Collaboration [Video]

Businesses are increasingly working together to develop new products and services. With that collaboration is the risk that precious trade secrets will be lost. Attorney Christopher Larus sits down with Seth Northrop to...more

“Free Sherlock” Litigation Raises Specter of Antitrust Liability for Distributors Cooperating With Intellectual Property Owners

Leslie Klinger, noted Sherlock Holmes scholar and lawyer, has waged a nearly all-out legal offensive against the Estate of Arthur Conan Doyle over the Estate’s assertion of a copyright in connection with certain works...more

Beer Bills: New Laws & Legislation on Tap

There are a number of bills and new laws that craft brewers should have on the radar – legislation that could affect operations and distribution. In California, two of these bills became law, while one is still pending...more

Why Manufacturers Should Look At The Federal Trade Commission (FTC)’s Website

As readers of this blog know, Pam looks at OSHA’s website often to stay up to date on news that impacts manufacturers. I tend to look at the Federal Trade Commission (FTC)’s website to see if there are any recent orders or...more

When to Walk Away from an Agent or Distributor (Part IV of IV)

An effective due diligence screening program should include instances when a company decides not to engage an agent or distributor. It is hard to persuade the business side of this fact but success does not necessarily flow...more

False Claims Act Update: GSA Contractor Reasonably Relied Upon Distributor Certifications Of Product Origin And Trade Agreements...

The United States Court of Appeals for the District of Columbia Circuit recently upheld a District Court’s dismissal of a False Claims Act (FCA) complaint against a federal government contractor in a case that will be of...more

Integrating and Training Your Agents and Distributors (Part II of IV)

The Department of Justice and the SEC know they can push companies to expand and improve their anti-corruption compliance programs. They are well aware that the requirements set forth in their settlement documents, as well as...more

The Origin and Operation of the Famous 70% Rule Explained

The 70% rule derives from the 1979 FTC Amway decision in which an administrative law judge recognized that Amway’s 70% rule helped prevent inventory loading (it is not a retailing rule). Basically, the Amway rule provided: at...more

Tennessee Recognizes Personal Use in New Legislation

On July 1st, 2014, Tennessee became the latest government/regulatory entity to adopt updated MLM/Pyramid legislation recognizing “personal use” in pyramiding analysis. The Tennessee language is similar to language adopted...more

Doing Business in Canada: E-Commerce

E-COMMERCE - Canada has a vibrant Internet community. Because of the great expansion of the Internet in Canadian homes and businesses, Canada and its provinces have, in recent years, regulated Internet activity and...more

Drug Distributor and Pharmacies Obtain Partial Dismissal of State and Federal FCA Claims

On June 10, 2014, a New York federal court dismissed, in part, state and federal False Claims Act (FCA) claims brought against Novartis Pharmaceuticals Corporation and pharmacies to which it distributed (CVS Caremark Corp.,...more

Commission-Based Sales Agreements for Medical Supplies and Equipment: More Whistleblower Activity on the Horizon? - A Wide Range...

The common industry practice of compensating independent contractor sales representatives on a "percentage of sales" commission basis may be creating an enhanced risk of False Claims Act liability for illegal kickbacks in...more

Physician Owned Distributorship Concerns Continue to Make News

On June 17, 2014, Southern California Public Radio affiliate KPCC broadcasted a report about physician-owned distributors of implantable medical devices (“PODs”) and the legal and ethical concerns that are raised when POD...more

An Export Plan Should Include the Consideration of U.S. Distribution Laws if Selling Into the United States Through Sales...

A Canadian or other foreign company looking to obtain a presence in the U.S. market without having to set up its own U.S. sales operation may consider using intermediariesn such as independent distributors and sales...more

Focused on Franchise Law - May 2014

FRANCHISOR 101: When is Unreasonable, Reasonable? Crown Imports, LLC (Crown) imports Corona beer from Mexico. In 2008, two of Crown's Southern California distributors, Classic and HBC, agreed that Classic would buy...more

United States: The “Top Ten” Things For A Supplier To Consider In Terminating A Distributor

Regardless of labels like “dealer,” “distributor” or “reseller,” there are some fundamental issues that demand attention whenever a supply relationship is involuntarily terminated. We work with suppliers in planning and...more

Insuring Your Business - March 2014: Is That Covered? Timely Reporting of Food Claims

When food producers and distributors are faced with a product recall, one of the most common questions is: How soon, if at all, do you report the claim to your insurance company? The answer is simple—you should be reporting...more

Focused on Franchise Law - February 2014

FRANCHISOR 101: Franchisor Successfully Fends Off Fraud Claims - There are circumstances when a fraud claim will not succeed against a franchisor. In Dunkin' Donuts Franchised Restaurants, LLC v. Claudia I, LLC, a...more

Distributor FAQ: As a distributor, can I use display booths to sell my company’s products? Is there a limit on the time I can...

As a distributor, can I use display booths to sell my company’s products? Is there a limit on the time I can spend selling at a booth? First, check the company policies, as they will be the guiding rule. Most companies...more

Distributor FAQ: In regards to event sales, such as fairs, kiosks, vending machines, etc., am I authorized to sell my company’s...

Most companies would prohibit sales in flea markets, swap meets, vending machines or garage sales. It is generally viewed that such locations dilute the value of the company’s products and opportunity. Companies typically...more

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