Dealer Agreements: 6 Key Points

By
Joe Kafrouni
04 Jun 2013
•
5
min read

A dealer agreement is a contract between a distributor of goods and the company who sells them to the public. Typically, the manufacturer will sell a product to the distributor, the distributor will then sell the product to the dealer, and the dealer will then sell the product to the final consumer.

Application for small business people

Many small businesses operate in the field of selling goods and services to the public. Unless they are dealing directly with the manufacturer of a product, then they will generally source the products they sell from a distributor. In these situations, the terms and conditions of the relationship between the small business and the distributor are set out in the dealer agreement.

Most manufacturers and distributors are very concerned with maintaining the profile of their brand and the quality of their products. They may require the dealer to abide by certain conditions before it will be granted the right to sell a particular product. These requirements may include having the product displayed in a specific way, having a set pricing structure and running certain promotions. The dealer is often referred to as an “authorised dealer” to emphasise that the manufacturing company approves of that small business as a representative to sell the product.

6 key things to consider

Prior to entering into a dealer agreement, it is important that you consider the following issues:

  1. Who are the parties to the agreement?
  2. If you are the dealer, does the agreement restrict you from entering into similar agreements with other distributors?
  3. Are there any other “authorised dealers” of the product in your local area?
  4. Is the dealer required to sell a specific amount of the product within a certain time frame?
  5. What are the distributor’s responsibilities in terms of providing the product, delivery times, and what are the consequences of a breach?
  6. Who is responsible if there is any defect in the quality of the products?

What to do next: If you would like help or more information on dealing with dealer agreements call me on (07) 3103 3199 or email joe@klaw.com.au.

Want my view on your own situation?

Book an initial consultation

: up to two hours with me by phone for a fixed fee of $1,650 (including GST), then a short written note of my advice and next steps. If my conflict check means I can't act, I'll refund your fee in full. To check anything first, email

info@klaw.com.au

or call

(07) 3103 3199

.

Joe Kafrouni, Accredited Specialist in Business Law, Kafrouni Law

Disclaimer: This article is general information only and is not legal advice. Before acting on it, get advice on your own circumstances. To the extent the law allows, Kafrouni Law accepts no liability for any loss arising from reliance on it. This article is the copyright of Kafrouni Law.

What People Say

Joe's been our company’s lawyer from the beginning and has been instrumental in our journey as company owners and directors. When dealing with both complex and sensitive company issues, Joe is able to provide us with clearly articulated strategies that are well thought‐out and with the bigger picture in mind. He genuinely cares and is always willing to share his personal views, which are both honest and just. Joe is highly professional and knowledgeable in his field. You will definitely benefit having him on your team.

Company director and shareholder

Joe has assisted us with numerous acquisitions and mergers over the last 10 years. Joe's advice and expertise have been invaluable. Joe is always prompt and professional and answers all of our questions in detail. I can highly recommend working with Kafrouni Law and we will look forward to working with them for many years to come.

Managing director, acquisitions

Thank you, Joe. It was a pleasure working with you to resolve the matter today. In particular, I appreciated your patience to fully understand each party’s position and to bed down a final heads of agreement to conclude the resolution between the parties.

Business owner, commercial dispute

Kafrouni Lawyers assisted me to resolve my partnership and company shareholder dispute over a family cattle business and property. From the start, Joe provided practical advice and options to resolve the dispute away from the courts. His perseverance and technical skill helped unravel a complex financial structure, resolved disputed shareholder claims, and resulted in a signed settlement deed rather than litigation. Joe cared to explain the legal and financial complexities behind his step by step advice and maintained our focus on the end goal. Joe's involvement certainly improved my family's position and I recommend Joe to anyone finding themselves in similar circumstances.

Partner and shareholder, family agricultural business

The biggest lesson I have learnt from you recently, Joe, is that it pays to have a professional such as yourself on my side to deal with matters that I am unequipped to handle … so I can carry on with the task at hand of building my business! Thanks again, I’ll take pleasure in recommending your services to anyone in need.

Business owner

Joe, as you know we were in a very difficult position with our company before we engaged you as our lawyer and fortunately, even with the odds stacked heavily against us in our shareholders dispute, you managed to pull us through to victory. You are a true credit to the industry not only because of your skilled negotiating tactics but also due to your personable nature, which made us feel comfortable in such a volatile situation.

Company director, shareholder dispute

‍
‍

Book an initial consultation

An initial consultation is the best way for us to find out whether, and how, I can help. It suits business owners and directors facing a decision that matters. You get my considered view of your situation, not just a first impression.

‍

The fee is a fixed $1,650 (including GST). It covers a phone consultation of up to two hours, plus up to one hour of my time to consider the material you send me beforehand and to prepare my written note afterwards. Here is how it works:

1. When you book, you tell me briefly what the matter is about and who else is involved, so I can carry out a conflict check and confirm I’m free to act. If I can’t act for you, I’ll refund your fee in full.

2. I tell you what information and documents I’d like to see, and I consider them before we speak.

3. We talk it through by phone. I give you my initial advice, the options I see and what I’d do in your shoes.

4. Afterwards, I send you a short written note of my advice and the next steps I recommend.

‍

If I can help further, I’ll explain how. If I can’t, I’ll say so. You are under no obligation to engage me further. If your matter needs more than this, I’ll send you a proposal setting out how I can help and an estimate of my fees. No further work starts until you accept it.

‍

I keep only a limited number of consultation times. If none suits you, or you’d like to check anything before booking, email info@klaw.com.au and I’ll do my best to accommodate you.

Skip to main content