Distributors

News & Analysis as of

Eleventh Circuit Affirms FTC Finding that Rebate Program Served to Unlawfully Maintain Monopoly Power

The Eleventh Circuit recently affirmed a Federal Trade Commission finding that a manufacturer’s rebate program requiring exclusivity from its distributors was an unlawful maintenance of monopoly power under Section 5 of the...more

FTC Flushes McWane in a Big Eleventh Circuit Exclusive Dealing Win

The situations where exclusive dealing policies, explicit or tied to an aggressive discounting program, cross the line under the rule-of-reason remain far from clear. Because it involved appellate review of a Federal Trade...more

Even the Great Wall of China Can’t Hide a U.S. Distributor in a Product Defect Lawsuit

The Illinois First District Appellate Court recently held that a U.S. distributor cannot escape liability under the Illinois Distributor Release Statute if the plaintiff was unable to obtain jurisdiction over a Chinese...more

Intellirod Spine Signs Licensing and Distribution Agreements With X-Spine Systems Inc.

Intellirod Spine LLC is, according to its website, a medical device company developing wireless sensing technologies for use in spinal care.  According to Orthopedic Design and Technology, Loadpro is the company’s forthcoming...more

Oregon Federal Court Weighs In on Disputed Umbrella Theory of Damages

An Oregon federal court recently relied on the so-called umbrella theory of damages to decide that the plaintiffs had an antitrust injury necessary to pursue an injunction. While this decision has garnered attention for...more

Another Mandate for Manufacturers/Distributors: Conflict Minerals Disclosure

In 2010, the U.S. Congress passed a law called the “Dodd-Frank Wall Street Reform and Consumer Protection Action of 2010 (the Dodd-Frank Act).”  The Dodd-Frank Act is generally known as the legislative response to the...more

A Clean Slate? California Bill Is Latest Attempt to Legislate Labeling Requirements for Cleaning Products

Another potentially meaningful development in legislation affecting consumer products companies: on February 25, a California legislator introduced a bill, AB 708, that would require manufacturers, distributors and retailers...more

FDA Attempts to Clarify Enforcement Position Regarding Evolving Health Technology

Recently, the U.S. Food and Drug Administration (FDA) has issued a flurry of guidance and draft guidance in an effort to better define the types of products that the FDA will choose to actively regulate. In one of these...more

Indiana Reforming Beer Laws

Last week, the Indiana House of Representatives voted 87-7 to raise the production limit on the amount of beer that can be produced by craft breweries. The proposed legislation would increase the production level to 90,000...more

Kansas Considering Carve Outs

House Bill 2189, which is currently before the Kansas legislature, would allow breweries to sell beer directly to retailers, public venues, and caterers. Currently, Kansas breweries must sell their product directly to...more

Anheuser-Busch Loses Key Battle in Kentucky

Since Prohibition, Kentucky brewers have not been allowed to own their own distributors. Like many states throughout the United States, Kentucky implemented a three-tier system that separates the alcohol industry into...more

What Is Coding and How Does It Work?

Most modern direct selling plans offer enroller coding bonuses. Historically, a sponsor enrolled a new distributor frontline and was deemed the sponsor. Commissions flowed from this relationship. However, as sponsors became...more

How Will The Commercial Use of Drones Impact Manufacturers/Distributors?

The Federal Aviation Administration (FAA) has issued a series of proposals for the use and regulation of drones (i.e., Unmanned Aircrafy Systems (UAS)) for commercial purposes.  In conjuction with these proposals, the White...more

What Exactly Do You Mean By “Reseller” Agreement?

I was recently reminded that the term “reseller” agreement can often mean different things to different people.  Misunderstandings about these types of relationships creates the potential for miscommunication and wasted time...more

Drug Disposal Ordinance: Supreme Court Writ Filed

On December 29, 2014, the Pharmaceutical Research and Manufacturers of America (“PhRMA”), the Biotechnology Industry Organization (“BIO”), and the Generic Pharmaceutical Association (“GPhA”) jointly filed a Petition for a...more

Franchise and Distribution News - January 2015

TAKE ACTION NOW TO AVOID UNEXPECTED STATE TAX LIABILITIES - Traditionally, nexus for state income tax liability has required some type of physical presence or continuous contacts by the franchisor/distributor with a...more

Five 2015 Corporate Compliance / Litigation Issues Manufacturers Need To Keep An Eye On

It is our annual tradition at the beginning of each year to report on significant issues that face manufacturers/distributors in the year ahead.  Two weeks ago, Matt reported on significant issues in the labor/employment...more

Are Taprooms on the Horizon in Georgia?

The State of Georgia is one of just four states left that adhere to dated laws prohibiting the sale of craft beer on-site. In Georgia, a craft brewery must sell its product to a distributor and that distributor must sell the...more

New Proposed Proposition 65 Warning Requirements: What You Need To Know

On January 12, 2015, California’s Office of Environmental Health and Hazard Assessment (“OEHHA”) released the long anticipated Notice of Proposed Rulemaking that proposes changes to the warning requirements under Proposition...more

Florida Liquor Stores & Beer Distributors Challenge Tasting Rooms

Liquor stores in Florida and beer distributors are joining forces to challenge the way Florida is issuing licenses that let breweries sell their products in tasting rooms. The Florida Retail Federation is suing the Department...more

Carving Out Small

States have been vested with the responsibility to regulate the manufacture, distribution, and sale of alcoholic beverages since the repeal of Prohibition. In carrying out this authority, many states have implemented a three...more

Competition and Regulation Update: A Win For High Quality Brands And Distributors

In December 2014, The Australian Competition And Consumer Commission (ACCC) Authorised Tooltechnic To Fix The Minimum Price At Which Its Dealers Could Sell Festool Tools To Consumers - That Is, To Engage In Resale Price...more

The Crimes of Others: Adam Lanza, Sandy Hook, and Protection Against Tort Liability for Selling Firearms

The families of the victims of the Newtown, Connecticut shooting, in which Adam Lanza attacked the Sandy Hook Elementary School, have filed a lawsuit against the seller of the AR-15 rifle that Lanza used in the crime, and...more

Data Privacy: A Bill in Congress Every Manufacturer Should Be Aware of

One of the issues that manufacturers/distributors are paying more attention to is their document retention policies. Things get complicated, however, when a corporation has operations outside of the United States. It is not...more

Damages in “Aggravated Breach” Cases

We have written before about the “aggravated breach of contract” theory under N.C. Gen. Stat. § 75-1.1. This theory can make a breach of contract a springboard to treble damages....more

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