Reseller vs. License By Richard Hsu
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
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
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
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
We are often asked by executives starting a network marketing company if they can have consultants earn income by referring others and if it’s legal.
Effectively, multilevel marketing is the sale of products through...more
It has long been recognized that there is high attrition rate among MLM distributors, perhaps as high as 80-90%. The vast majority of MLM consultants are part time and they join and leave for many reasons. The fault is not...more
The Spanish Parliament has approved this week the so-called Market Unity Act. This piece of legislation is aimed at simplfying the difficulties of providing services or manufacturing or distributing goods connected with...more
If you are a network marketing company or a distributor, you know that recruiting and retention are the lifeblood of the business. What factors make companies successful and the distributors successful? Of course, a...more
MLM attrition is high. This is a fact of life. All of those distributors, who you have signed up, have competing demands on their time. So, if they go passive, it is not your fault. If that happens, you should give it a good...more
When you are starting your MLM, direct selling, network marketing, or party plan business, you’ll find that recruiting experienced distributors is often essential to your company’s success. And if you don’t have the...more
The beer industry is one of the most highly regulated industries in the United States. Every state oversees the sale and distribution of beer, and the differences among the states' regulatory processes result in a maze that...more
We continue our series for the Milan Fashion Week.
We have been discussing in the past various contractual options for devising distribution strategies in the fashion & retail sectors, from franchising and network...more
The risks posed by third party relationships (vendors, suppliers, agents, distributors, resellers, etc.) are huge – and often unaddressed. Regulations continue to increase as businesses become more global, and more and more...more
FRANCHISOR 101: CALIFORNIA REQUIREMENTS ON NEGOTIATED TERMS MAY CHANGE -
The California Franchise Investment Law and the California Code of Regulations currently require franchisors registered in California to disclose...more
Puerto Rican law requires an ordinary franchise contract to be read in conjunction with Puerto Rico’s Dealers Act, commonly known as Law 75. Law 75 provides additional protections to distributors of products regarding...more
On July 19, 2013, the Ninth Circuit affirmed an award of summary judgment to an aftermarket auto parts distributor that had received better prices than a competitor. Gorlick Distribution Centers, LLC v. Car Sound Exhaust...more
Richard Hsu, a technology transactions and intellectual property partner in the Mergers & Acquisitions Group at Shearman & Sterling, discusses the difference between a reseller or distributor agreement with a technology...more
The Federal Communications Commission’s (FCC) equal employment opportunity (EEO) rules for multi-channel video program distributors (MVPD) require MVPD employment units with six or more full-time employees to file an Annual...more
The Sacramento Kings professional basketball team is suing over an exercise ball that burst and injured one of their players. Francisco Garcia broke his wrist when the ball burst while he was laying on it lifting weights. ...more
On July 16, 2013, the U.S. Department of Justice (DOJ) indicted Michael Baker and Michael Gluk, the former CEO and CFO, respectively, of ArthroCare Corp. – a Texas-based publicly traded surgical device company. Baker and...more
What is supply chain finance?
The basic concept behind supply chain finance is that a bank (the "Financier") provides credit support for the distribution of goods and services (domestically and internationally) by a...more
Unexpectedly, the government of Argentina has decided to enforce law 23,316, enacted on May 23, 1986, regarding certain requirements for dubbing motion pictures and television programming (the “Dubbing Act”), which was only...more
As businesses across the economic spectrum seek to develop personalized pricing strategies, the insurance sector continues to lead the way with renewed impetus behind telematics-based insurance offerings.
In This Issue: Barry Kurtz Honored By Beverly Hills Bar Association;
Announcing Our Additional Practice Area: Beer Distribution Law; Franchisee 101: Personal Guarantee Of Fees And Costs Upheld; and, Contributing Expert...more
The United Arab Emirates (UAE) is a federation of seven Emirates established by a constitution that was promulgated in 1971. Abu Dhabi is the largest of the seven Emirates by geographic size and holds most of the hydrocarbon...more
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