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Non Exclusive Distribution Agreement Template for United States

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Key Requirements PROMPT example:

Non Exclusive Distribution Agreement

"I need a Non Exclusive Distribution Agreement for my software company to appoint multiple distributors across the western United States, with specific requirements for technical support and quarterly sales targets starting from March 2025."

Document background
The Non-Exclusive Distribution Agreement is essential when a supplier wishes to maintain flexibility in their distribution network while establishing formal relationships with multiple distributors. This document, governed by U.S. federal and state laws, defines the framework for product distribution, including territorial rights, pricing structures, performance metrics, and compliance requirements. It's particularly valuable when suppliers want to maximize market reach without committing to exclusive arrangements, while still maintaining control over their distribution channels and brand integrity.
Suggested Sections

1. Parties: Identification and details of the supplier/manufacturer and distributor

2. Background: Context of the agreement and basic premises of the business relationship

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Terms of distributor appointment and territory definition

5. Rights and Obligations: Core responsibilities of both parties

6. Products and Pricing: Product specifications and pricing structure

7. Term and Termination: Duration of agreement and termination conditions

8. Intellectual Property: Usage rights of trademarks, patents, and other IP

9. Governing Law: Applicable jurisdiction and dispute resolution

Optional Sections

1. Minimum Purchase Requirements: Specific purchase quotas or targets for the distributor to maintain the agreement

2. Marketing Obligations: Marketing commitments and requirements for promoting the products

3. Training Requirements: Product training and certification requirements for distributor's staff

4. Post-Termination Obligations: Obligations and procedures after agreement termination

5. Insurance Requirements: Required insurance coverage and liability provisions

Suggested Schedules

1. Product Schedule: Detailed list of products covered by the agreement including specifications

2. Price List: Current pricing structure, terms, and conditions

3. Territory Map: Detailed definition and mapping of geographic territory

4. Service Level Agreement: Performance metrics, standards, and service requirements

5. Marketing Guidelines: Brand usage requirements and marketing standards

6. Quality Control Procedures: Product handling and quality maintenance requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Industries

Sherman Antitrust Act: Federal law that prohibits anticompetitive business practices, monopolization, and restraints of trade. Must be considered to ensure distribution agreement terms don't violate antitrust provisions.

Clayton Act: Supplements the Sherman Act by addressing specific anticompetitive practices not explicitly covered in the Sherman Act, including exclusive dealing arrangements and price discrimination.

Federal Trade Commission Act: Prohibits unfair methods of competition and deceptive practices. Relevant for pricing, marketing, and distribution practices outlined in the agreement.

Robinson-Patman Act: Addresses price discrimination between different purchasers of the same product. Critical for establishing pricing terms in distribution agreements.

Uniform Commercial Code (UCC): Particularly Article 2 governing sales of goods, provides framework for commercial transactions including warranties, title transfer, and remedies.

Magnuson-Moss Warranty Act: Federal law governing consumer product warranties. Must be considered if distribution involves consumer goods with warranties.

Intellectual Property Laws: Federal trademark, copyright, and patent laws that protect IP rights in distribution relationships, including license grants and restrictions.

State Contract Laws: State-specific contract formation, enforcement, and interpretation rules that may affect the agreement's terms and execution.

State Franchise Laws: State laws defining franchise relationships to ensure distribution agreement doesn't inadvertently create a franchise relationship.

State Unfair Trade Practices: State-specific laws prohibiting unfair competition and deceptive trade practices that may affect distribution terms.

Export/Import Regulations: Federal regulations governing international trade if distribution involves cross-border transactions.

Vertical Restraints Regulations: Competition laws governing restrictions between parties at different levels of the distribution chain.

CISG: UN Convention on Contracts for the International Sale of Goods, applicable to international distribution unless explicitly excluded.

FCPA: Foreign Corrupt Practices Act, crucial for compliance in international distribution relationships to prevent corrupt practices.

Territory Definitions: Legal requirements for defining geographic scope and exclusivity of distribution rights.

Performance Requirements: Legal framework for establishing and enforcing minimum purchase requirements, sales targets, and performance metrics.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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