Cut off the supply to distributor

Question posted by Petr Tesina, on behalf of Fair Krmiva s.r.o. in Czech Republic

Can a supplying firm based in the UK sever links with a distributer that they have been supplying for 4 years and demand the return of all intellectual property, despite the fact that the distributer set up the web domain and paid for it ?
The distributer based in another EU country received goods from the supplier in Dec 2013 and was abruptly informed a short period later ( NB goods had been paid for) following another projected order request of the decision to cease trading.
Commission that had been paid for the previous 3 years was similarly withdrawn and the distributer left high and dry ,not being able to supply his customers.
Is there anything in EU law that addresses this behaviour, bearing in mind that a written understanding existed between supplier and distributer and would there be a case for prosecution and compensation?

Posted:
Report inappropriate content

David Bill, on behalf of ChemPlex Ltd in EH48.

If you or your company receive your income in the form of a sales commission from the UK seller (or the seller in any other EU country) then then legally you will be classed as a "commercial agent" (Not a distributor).

Commercial agents have very strong legal protection from being cut off & can demand heavy compensation.

This is covered by the Commercial Agents Directive 86/653/EEC

Better talk to a lawyer who if familiar with this directive to see if you qualify as a "commercial agent" & how much compensation you may be due.

Hope this helps

David Bill

Posted:
Report inappropriate content

To respond to this question, please Login or Register