Exclusive Distributor

A distributor who, under its distribution agreement, is protected against the appointment of competing distributors. The scope of the exclusivity may vary. Thus it may be territorial exclusivity (most common); but it may also be market exclusivity, i.e., sale rights to sell the product to a certain class of customers, or a combination of the foregoing. If the distributor is exclusive, then unless otherwise expressly agreed, this usually precludes the owner from selling the product in the exclusive territory or field.

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