The document discusses various topics related to commercial law, including: 1. Typical commercial agreements such as supply, distribution, loan, and other agreements. 2. Warranty, liability, and product liability under German law. It differentiates between warranty, guarantee, and liability and outlines statute of limitations. 3. International business law considerations for agreements between parties in different countries, including applicable law, choice of law, jurisdiction, and arbitration clauses.

1. Commercial Law
Part A – Commercial: Typical Agreements
Part B – Warranty and Liability etc.
Part C – International Business and German/European Law
Part D – Distribution
Part E – Antitrust Law
Munich, June and July 2009 Dr. Martin Rothermel, Taylor Wessing

2. Content
A. Commercial: Typical Agreements – an overview
• Supply and Sale Agreements (including: purchase contracts, contracts for work,
service contracts, terms and conditions, etc.)
• Distribution Agreements (including: agency agreement, reseller agreements, etc.)
• Loan Agreements
• Other Agreements
B. Warranty and Liability under German Law and the Convention for the
International Sale of Goods
• Warranty
• Guarantee
• Liability
• Product Liability
C. International Business and German / European Law
• Applicable Law and Choice of Law
• Competent Jurisdiction and Choice of Venue Clauses
• International Arbitration and Arbitration Clauses
D. Distribution
• Agency versus Distributor Agreements
• Antitrust (Cartel) law in Vertical Agreements
E. Antitrust Rules on Vertical Agreements
-1-

3. Glossary
BGB = German Civil Code
HGB = German Commercial Code
GWB = Law against restraint in competition
…
-2-

4. A. Typical Agreements
-3-

5. A. Question: Starting Business – what agreements do we need?
-4-

6. A. Typical Agreements – an overview
Sale and Purchase Agreements §§ 433 etc. BGB
Rental Agreements §§ 535 etc. BGB
Specialty: Lease Agreements §§ 433, 535, etc. BGB
Service Agreements §§ 611 etc. BGB
Specialty: Employment §§ 611 etc. and other BGB
Agreements for work results §§ 631 etc. BGB
Specialty: Supply of goods to be manufactured §§ 651 etc. BGB
Loan Agreement §§ 488 etc. BGB
Real Estate, Mortgage, etc. §§ 873,1113 etc. BGB
General Terms & Conditions (all of above and below) §§ 305 etc. BGB
Agency Agreements §§ 84 etc. HGB
Commission Agent §§ 383 etc. HGB
Distribution & Franchise Agreements §§ various – see above
-5-

7. B. Warranty and Liability, etc.
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8. B. I. Basic differentiation
-7-

9. B. I. Please differentiate Please Note: Difference between
liability for default and guarantee
Outline
1 2 3
Warranty Guarantee Liability
Defect in quality Guarantee for (§ 443 Breach of obligation
BGB as example): e.g.:
(§ 434 BGB)
Cause - Defect, delay
Defect in title - Quality
- Other obligation
( § 435 BGB) - Durability - Strict liability
- etc.
Transfer of risk Relevant moment: Breach of obligation
(defect in quality) - Transfer of risk Default required (not
Moment Transfer of title - Guarantee period strict liability)
(defect in title) No default required
Subsequent performance As agreed Compensation
- Replacement
Consequence
- Rectification
Avoidance (withdrawal)
Price reduction
Compensation
-8-

10. B. II. Warranty
-9-

11. B. II. 1. Warranty
Statutory Law Practical Tipps
Defect in quality (§ 434 BGB)
„Agreed Quality“
- Prototypes (with acceptance)
- Specification
- etc.
Explain „use“
Explain Durability (Service Level)
Explain Destination
Passing of risk is important; INCOTERMS?
Please note the inspection obligation in § 377
HGB
Defect in title (§ 435 BGB)
etc.
-10-

12. B. II. 2. Statute Limitation for warranty
Statute Limitation
Start
§ 438 Abs. 2:
In case of land the limitation begins upon its being handed
over, in other cases upon delivery
Period
Please note:
2 years
regular - Suspension in the event of negotiations (§ 203 BGB)
- Suspension by pursuit of rights (§ 204 BGB)
5 years
Buildings - Beginning a new if acknowledged (§ 212 BGB)
30 years
Property rights
-11-

13. B. II. 3. Specialty: Consumer warranty rights
Sale of consumer goods (§§ 474 ff. BGB)
Mandatory Provisions: warranty rights of consumers may not be limited in advance
- Neither with respect to claims
- Nor with respect to statute limitation: at least one year (for used goods) or longer
Presumption: defect in quality existent at passing of the risk if defective within first 6 months thereafter
-12-

14. B. II. 3. Specialty: Consumer warranty rights
Right of recourse (§§ 478, 479 BGB)
Recourse within chain of delivery
Buyer/Supplier Buyer/Supplier Buyer/Supplier Retailer
Manufacturer
Consumer
or Supplier
• No period of grace
• Reimbursement of expenditures
Manufacturer
• Reversal of burden of proof • Warranty rights of
bears costs of
• Statute limitation at least 2 months after fulfillment of rights by claiming tier consumer
defects
• Applicable for whole chain
• No exclusion in advance – unless not compensated
-13-

15. B. II. 4. Subsequent performance by replacement or rectification
Subsequent Performance
Replacment?
Replacement?
Reasonable for Rectification?
Measure Choice of purchaser seller
Rectification? neither nor Other rights
• Avoidance
• Price reduction
Typical place of
Place Place of performance
goods ? What if delivered elsewhere?
§ 439 Abs. 2 BGB Details:
Details:
The seller must bear all expenditure required for the purpose of Costs of seller
Costs Costs of seller
supplementary performance
Costs of purchaser
Costs of purchaser
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16. B. III. Guarantee
-15-

17. B. III. Guarantee
Basics
BGB Consequences
Manufacturer‘s or Seller‘s guarantee
Terms are decisive
Detailed provisions necessary
Please note: In English language no clear distinction between warranty and guarantee e.g.
„warrants“, „guarantees“, „represents“, „…“ – clarify that!
-16-

18. B. IV. Compensation for damages
-17-

19. B. IV. Compensation rights
Outline (1)
Other „Producer
Defects Strict liability
obligations liability“
Compensation Compensation Compensation Compensation
Content
Delivery of Default in other Compensation Default in
defective obligations without default obligations
Basis products
Seller Seller Producer Producer
Labeler
Who
Importer
-18-

20. B. IV. Compensation rights
Outline (2)
Other „Producer
Defects Strict liability
obligations liability“
Description Exculpation ??? Exculpation
Prevention Quality Quality
Exculpation assurance
No limits No limits Limitation No limits
- Personal injury: Nicht:
What Vermögens-
85 Mio. EUR
- Other: ?
schaden
Buyer Buyer Buyer Buyer
Enduser Enduser
Claimant
-19-

21. B. IV. 1. Liability for contractual obligations
Liability for defects and other obligations
Defects: as above
Other obligations resulting from contract
-20-

22. B. IV. 2. Strict liability
Liability without default
Product is not safe
Product not safe = less safety than reasonably expected
Reasonableness State of the art DIN, ISO, GPSG etc.
Expectation Current knowledge
+
Liability without default
Construction Fabrication Instruction Liability for
- Personal injuries
- Damages in privately used goods
No liability, if
- Not marketed
- Based on mandatory rules
- Not to defect/avoid
Theoretically Important Manufacturer, Labeller, Importer: Mutual liability
-21-

23. B. IV. 3. Liability as producer
Liability as producer
Defective product, product is not safe
Reasonability State of the art Certification rules
Expectation Current knowledge
+
Default in general obligations
Construction Fabrication Quality Organisation Instruction Surveillance Reaction
… … … … … … …
Case law
-22-

24. B. IV. 4. Compensation
Liability
Breach of obligation
Default Examples:
Precondition - Defects (not in all cases default of seller – no obligation
for inspection)
Compensation of damages Amount
Causality!
Consequence - Everything predictable
- Within scope of provision
No differentiation as to subsequent damages
Limitation in T&C difficult
Practical Tips
-23-

25. C. International Business and German / European / International Law
-24-

26. C. International Business
(1) Example – taken from an international distribution agreement
-25-

27. C. International Business
(2) Example – taken from an international distribution agreement
-26-

28. C. International Business – A continuous example will explain the
basics (distribution agreement)
Example
Germany Contractual relationship Foreign Country
Manufacturer, Distributor,
Seller Distribution Agreement Purchaser
Supply Agreements
Distributor, Manufacturer,
Purchaser Seller
• Which law? I
• Which choice of law? II
• Which court? III
• Which choice of venue? IV
• Arbitration? V
-27-

29. C.I. Which Law
-28-

30. C. I. 1 Differentiation between intra European cases and involvement
of third countries
Outline: Which law to apply?
EU Third Countries
Rome Convention of 1980 for contractual National law (similar principles):
obligations („EVÜ“) - freedom of choice of law
„Transformed“ into EGBGB in Germany - grouping of contacts or place of
- contractual obligations (Art. 27-37 contract = center of gravity
EGBGB) - protection of weaker party
and
Renvoi - ordre public
- non contractual obligations
(Art. 38-42 EGBGB) Ordre public - internationally mandatory rules of
Choice of law national law
Rome-I-Regulation for contractual
obligations – coming 12/2009
Rome-II-Regulation for non contractual
obligations – effective since 01/2009
„Unified“ in EU (for contractual It differs
obligations)
Predictable Not predictable
-29-

31. C. I. 2 EU: for contractual obligations the principle of relevant contact
(center of gravity) prevails
Backup
EU: Principles (1) – Relevant Contact
Not: - non-contractual obligations (Art. 1 EVÜ,
Characteristic performance (Art. 4 EVÜ, 28 38 ff. EGBGB, Art. 1 Rome I)
EGBGB, Art. 4 Rome I) - title on real estate (Art. 4 III EVÜ, 28 III EGBGB
Even for definable parts of the agreement and lex sedes materiae)
- property law (Art. 43 EGBGB und lex rei sitae)
Beneficial comparision: - Consumer (Art. 5 EVÜ,
29 EGBGB, Art. 6 Rome I)
- Employee (Art. 6 EVÜ,
30 EGBGB, Art. 8 Rome I)
Relevant Contact
of agreement to national law
Assumption (Art. 4 II EVÜ, Material law applicable – no
28 II EGBGB) „renvoi“ (Art. 15 EVÜ, 35
- characteristic performance EGBGB, Art. 20 Rome I)
Unless: more closely connected to other country Ordre Public
(Art. 4 V EVÜ, 28 V EGBGB) (Art. 6 EGBGB, Art. 21 Rome I)
International mandatory law (Art. 34 EGBGB, 7 II
EVÜ f. „law of forum“– 7 I EVÜ f. „law of third
country“, Art. 9 Rome I)
-30-

32. C. I. 2 EU: Characteristic Performance
Details
EU: Principles (2) – Characteristic Performance
Sales Law of Seller
May differ in
distribution
Work Supply Law of Contractor
Law of Service Provider
Services as: Distributor
Agent (attend: Ingmar-Decision)
Franchisee
Others
-31-

33. C. I. 3 Third Countries: Principles are similar
Difficult to predict
Detailed review to
Non-EU-Countries: Outline recommend
Basics Details
Ordre public
Freedom of Choice
Mandatory rules
International contract
Grouping of contacts, most significant relationship
Specific Performance
Place of contract
-32-

34. C. II. Choice of Law
-33-

35. C. II. Choice of law clauses
Basic Questions
1. Subject of choice of law?
2. Law to be chosen?
3. How to choose?
-34-

36. C. II. 1 Subject of Choice of Law
-35-

37. C. II. 1 EU: Freedom of choice is predominant for contractual
obligations
Principles (1) – Freedom of choice
Choice of material law (Art. 3 EVÜ, Art. 4 II Completely or partly (Art. 27 I3 EGBGB, 3 I3
EGBGB, Art. 3 Rome I) EVÜ, Art. 3 Rome I); Dépeçage
- no renvoi (Art. 15 EVÜ, Art. 35 EGBGB, Escape from inconvenient law !?
Art. 20 Rome I)
Even for „neutral law“ (Art. 2 EVÜ, Art. 2 Rome I)
= law of third country
Freedom of choice
Art. 3 EVÜ, 27 EGBGB, Art. 3
Rome I
But: But:
International mandatory law Consumer protection (Art. 5
(Art. 34 EGBGB, 7 II EVÜ – EVÜ, 29 EGBGB, Art. 6
7 I EVÜ, 22 EVÜ, Art. 9 Rome I)
Rome I)
E.g.: Belgian Distributor Employees (Art. 6 EVÜ, 30
Ordre Public (Art. 6 EGBGB, Art. 21 Rome I) EGBGB, Art. 8 Rome I)
Beneficial comparision
-36-

38. C. II. 1 Conclusion
Summary
Germany Contractual relationship Foreign Country
Manufacturer, Distributor,
Seller Distribution Agreement Purchaser
Supply Agreements
Distributor, Manufacturer,
Purchaser Seller
Choice of law possible?
Contractual obligation Not: Non-contractual obligation
Not: Property law
Not: Competition law
-37-

39. C. II. 2 Law to be chosen?
-38-

40. C. II. 2 The choice of „neutral“ law is not free of doubts – at least
outside the EU
Details (1) – Freedom of choice
„Neutral“ Law (law of third country)
EVÜ/EGBGB: possible within the borders of 3 III EVÜ, 27 III EGBGB (pure national contracts and except of
mandatory rules)
Rome I: as above, even for pure national contracts (Art. 2 Rome I)
Non-EU:
- depends on national law
-39-

41. C. II. 2 The choice of Soft Law is doubtful
Details (2) – Freedom of choice
Soft Law (no national law)
UNIDROIT Principles, Lando Principles (PECL), lex mercatoria, Sharia etc.
EU
- no exhaustive application of Soft Law – national law still applicable
Non-EU
-?
It is to differentiate:
It is to differentiate:
Selection of the law for the whole contract
Selection of the law for the whole contract
(„kollisionsrechtliche Verweisung“)
(„kollisionsrechtliche Verweisung“)
Incorporation of some of the provisions of the choosen law
Incorporation of some of the provisions of the choosen law
(„materiellrechtliche Verweisung“)
(„materiellrechtliche Verweisung“)
-40-

42. C. II. 2. „Soft Law“ – mostly will only be applicable if agreed or ratified
Details (3) – Soft Law - What is it?
„Organisations“ Content Application
UNCITRAL CISG, New York Convention Partly ratified
„Material Law“
UNIDROIT UNIDROIT Principles If agreed (?)
ICC Incoterms,
If agreed (!)
ICC Rules of Arbitration
Principles of European
Lando - PECL If agreed (?)
Contract Law
CENTRAL - Lex mercatoria Common or Customary Law If agreed (?)
-41-

43. C. II. 2. „Soft Law“ contains basics of contractual law
Details (4) – Soft Law - What does it contain?
UNIDROIT Principles Lando (PECL) lex mercatoria
?
Application of Principles Application of Principles, General Principles
Conclusion of contracts General Principles - Good faith and fair dealing,
venire contra factum proprium,
Binding character Conclusion of contract pacta sunt servanda, etc.
Interpretation Validity, interpretation - Freedom of contract
Third party rights Content - Cooperation
Performance - Set-off, retention
Performance
Warranty, Liability
Non-performance and Non-performance remedies - Culpa in contrahendo
compensation Assignment - Foreseeable loss
- Lost profits
Set-off Set-off
Limitation
Assignment, Transfer Limitation Burden of proof
Limitation periods Conditions Private International law
Interest - Center of gravity test
-42-

44. C.II. Again: What that law is applicable
(1) Example – taken from an international distribution agreement
-43-

45. C. II. 3 How to choose?
-44-

46. C. II. 3 Choice of law should be expressed and certain
Details (1) – Form of choice
Form
EU (Art. 3 I EVÜ, 27 I EGBGB, Art. 3 Rome I)
- The choice must be expressed or demonstrated with reasonable certainty by the terms of the contract or
the circumstances of the case
EU (Art. 3 IV EVÜ, 27 III EGBGB, Art. 3 Rome I)
- Choice shall be determined by the law which shall be chosen
Third countries
- Depends on national law difficult to predict
-45-

47. C. II. 3 Problems: Choice of law in General Terms and Conditions
Details (2) – Form of choice
Choice of law in T&C
see
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e ; s conv n
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Inclusion tuall p s a
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nttrra c rgumen t
- depends on national law co n
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- Ideally: written form and enclosure of T&C he lla 2)) – C
e
nt h
C iin t 02,, 44 2
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T& C 20 02 4
&
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Conflicting choice of law in T&C surre
ue (W
ncllo s r 2001 (
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- Last shot doctrine an d o be
an
en orm 1 Oct o
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- Knock-out-rule wrriitttte ourrtt 3
alllly:: w iigh C o
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- Center of gravity IIde a rall H gh
de H
e ra
Fed e
Fed
Language
- Allocation of risk: party who wants to include the T&C
- Ideally: „Global Language“ or language of contractual partner
- Special issue: reference on German letterhead
-46-

48. C. III. Competent Court, Choice of Venue, Enforcement
-47-

49. C. III. Being smart: Stipulations for Conflicts
Questions
Germany Contractual relationship Foreign Country
Manufacturer, Distributor,
Seller Distribution Agreement Purchaser
Supply Agreements
Distributor, Manufacturer,
Purchaser Seller
What to enforce and where?
Who is deciding without a choice of venue?
What to be chosen?
What is reasonable?
A combination of arbitration and
ordinary courts?
How to choose?
-48-

50. C. III. 1. Enforcement
-49-

51. C. III. 1. Difference between intra EU relationships and relationships
with third countries
Outline – Recognition and Enforcement
EU + EEA Non EU + EEA (third countries)
Brussels Regulations ZPO (§§ 328, 722 ff.)
in Germany
Lugano Convention in EU/EEA - Recogniton
(Iceland, Norway, Switzerland) - Procedures
National law in third countries
- Prevail all national laws - Judgement may not be enforced everywhere
- Enforcement in EU + EEA harmonized & possible (at - Better: Arbitration? (Due to New York Convention
least in theory) of 1958)
-50-

52. C. III. 2. Competence
-51-

53. C. III. 2. Difference between intra EU relationships and relationships
with third countries
Outline – Competence of courts
EU + EEA Non EU + EEA (third countries)
ZPO (§§ 12 ff.)
Brussels Regulations
- Prevail all national law
Lugano Convention in EU
- Competent court of seat of defendant Germany
(Iceland, Norway, Switzerland) and eventually at place of performance
- only in special cases at place of claimant
National rules on competence
third countries
???
- Prevail all national laws
- Competent court at seat of defendant and eventually
at place of performance
- Only in special cases at place of claimant - Double competence conceivable
- Only in special cases at place of claimant
-52-

54. C. IV. Choice of Venue
-53-

55. C. IV. Difference between intra EU relationships and relationships
with third countries
Outline – Choice of venue
National (Germany) EU + EEA Third Countries
§ 38 II ZPO § 38 II ZPO
§ 38 I ZPO
- No general domestic court in - No general domestic court in
- Only merchants
Germany Germany
- No form, explicit or implicit
- Written or in writing and - Written or in writing and
confirmed confirmed
Respective national law
But:
Art. 23 Brussels Regulation
- Not: consumer, employees
- Written or in writing and
confirmed
- In trade usances
-54-

56. C. V. Arbitration Clauses
-55-

57. C. V. Arbitration
Criteria
Due to New York Convention of 1958 (140 Member States) better to enforce
Selection of Arbitrators
International: Not focusing national law/circumstances
Free to find applicable law
Free to find appropriate procedures – but might be dangerous
No publicity
Speed?
Costs?
-56-

58. C. V. Arbitration Details
Comparision in costs* - ordinary courts/arbitration
Verfahrenskosten 500.000,00
450.000,00
400.000,00
350.000,00
300.000,00
250.000,00
200.000,00
150.000,00
100.000,00
50.000,00
0,00
Streitwert 50.000 100.000 500.000 1 Mio 5 Mio
DIS Kostenrisiko 3 SR (mit RVG Anwälte) 17.615,00 22.955,00 61.565,00 97.165,00 254.165,00
ICC Kostenrisiko Mittel 3 SR (mit RVG Anwälte) 23.027,72 33.668,82 83.973,64 125.414,50 289.402,40
Gericht Kostenrisiko 1. Instanz 6.598,00 9.338,00 23.848,00 35.848,00 131.848,00
Gericht Kostenrisiko 1. und 2. Instanz 14.279,60 20.344,40 52.449,60 78.849,60 290.049,60
Gericht Kostenrisiko 1., 2. und 3. Instanz 24.509,20 34.914,80 89.999,20 135.299,20 497.699,20
* net without in expenses in Germany
-57-

59. C. V. Arbitration Details
Comparision in costs* - ordinary courts/arbitration
Verfahrenskosten 3.000.000,00
2.500.000,00
2.000.000,00
1.500.000,00
1.000.000,00
500.000,00
0,00
Streitwert 50.000 100.000 500.000 1 Mio 5 Mio 10 Mio 20 Mio 50 Mio 100 Mio
DIS Kostenrisiko 3 SR (mit RVG Anwälte) 17.615,00 22.955,00 61.565,00 97.165,00 254.165,00 378.665,00 561.665,00 810.665,00 909.665,00
ICC Kostenrisiko Mittel 3 SR (mit RVG Anwälte) 23.027,72 33.668,82 83.973,64 125.414,50 289.402,40 412.209,65 605.673,50 874.171,95 970.914,70
Gericht Kostenrisiko 1. Instanz 6.598,00 9.338,00 23.848,00 35.848,00 131.848,00 251.848,00 491.848,00 731.848,00 731.848,00
Gericht Kostenrisiko 1. und 2. Instanz 14.279,60 20.344,40 52.449,60 78.849,60 290.049,60 554.049,60 1.082.049,60 1.610.049,60 1.610.049,60
Gericht Kostenrisiko 1., 2. und 3. Instanz 24.509,20 34.914,80 89.999,20 135.299,20 497.699,20 950.699,20 1.856.699,20 2.762.699,20 2.762.699,20
30 Mio. Cap in RVG and GKG
* net without in expenses in Germany
-58-

60. D. Distribution
-59-

61. D. I. Effective entry and penetration of markets require activity and
knowledge
Situation of Principal (Manufacturer)
Status quo Objective
No presence on market 1 Market entry Presence on market
No customer relations 2 Estabilishment of customer relations Customer relations
No knowledge about markets 3 Analysis of the market Growing knowledge
No huge investments 4 Reasonable activity Efficient structure
No fix structures 5 Flexible structure Flexibility
No tax implications 6 Tax considerations No tax implications
-60-

62. D. II. Analysis of potential structures and systems
Outline
Distributor (D) Agent (A) Employee (E)
Mostly companies Persons and companies Persons
Purchase and sale Constant promotion Protection of employee
In own name on own account Solicitation with authority
Risk of sales with D Risk of sales with principal
Double margins Success related remuneration
Clear
Clear Branch
distinction
distinction
Tax implications
Franchisee Commissioner Freelancer
Mixtures
Mixtures Concept, CI, CD, Royalties Own name on account of Only on occasion
principal
-61-

63. D. II.1. Distributorships – legal character
Backup
Outline
• not clearly stipulated in statutory law
• antitrust law applicable => typical limitation (such as exclusivity, non-competition, etc.
require legal review)
• no compensation – if properly drafted
-62-

64. D. II.2. Agencies – legal character
Backup
Outline
• clearly stipulated in statutory law – all over Europe and maybe beyond
• strong protection of distributor: number of advantageous internationally mandatory
provisions for agent
• no antitrust law applicable – if properly drafted
-63-

65. D. II. Calculation of Compensation Claims (Sec 89b German
Commercial Code, HGB)
Backup
Compensation Claim § 89 b HGB (Germany) – Abstract
Compensation claims require Termination of Agreement by
expiry of contractual term or mutual understanding without waiver or termination by principal without good cause given by agent or termination by
agent with good cause given by principal
Base Year Forecasting Horizon Equitableness Cap
• normally last year • approx.: 5 years (example) • term Average
before effective • churn rate: 20 % (example) • etc. annual
termination provision
• only new customers within last
who became regular 5 years
customers
New Sum Equitable Compen-
Base Year regulars Year 1 Year 2 Year 3 Year 4 Year 5 1 to 5 Amount sation
Burden of proof: Agent Burden of proof: Principal
-64-

66. D. II. Calculation of Compensation Claims (Sec 89b German
Commercial Code, HGB) – mutatis mutandis for distributors!
Backup
German Jurisdiction
Compensation claims in mutatis mudandis application on distributors
According to German jurisdiction the precondition for such mutatis mutandis application
under German law is (cumulative):
the integration of the distributor into the sales organisation of the company
and
any obligation (in the agreement or factual) of the distributor to forward customer data
(names, addresses, etc.) during the term of the agreement or in the course of its
termination to the company.
In such cases German jurisdiction applies the rules for goodwill compensation of agencies
(Sec. 89 b German Commercial Code) and some other agency provisions (e.g. pertaining
to the waiver on compensation in settlements and termination notice etc.) to distributors
mutatis mutandis.
-65-

67. D. II. It cuts both ways …
Structures and systems – advantages and disadvantages for principal
Distributor (D) Agent (A) Employee (E)
Risk of sale with D No antitrust law (if properly Strong directives possible
No goodwill compensation (if drafted)
properly drafted) Success related remuneration
Investments by D Knowledge about market
Availability of goods
Features
Features
Antitrust law, limited directives Risk of sale with principal Costs
Double margins Goodwill compensation Employee protection
Limited forwarding of market mandatory
knowledge Costs
-66-

68. D. II. Chances and risks must be balanced
Outline of chances and risks
Distributor (D) Agent (A)
Allocations of risks Risks Strong directives and Risks
No goodwill compensation exhaustive reports on
market
Antitrust rules on Success related Employment law (?)
restrictions remuneration Interests protection
Potential goodwill Goodwill compensation
compensation mandatory
Chances Chances
-67-

69. D. II. Advise necessary
Commission as ”best of
both worlds“ – concept?
Distributor or Agent
Chances
Risks
-68-

70. F. Antitrust Law – on Vertical Agreements
-69-

71. Article 81 – Treaty of Rome (similar in German law – GWB)
1. The following shall be prohibited as incompatible with the common market: all agreements between undertakings,
decisions by associations of undertakings and concerted practices which may affect trade between Member States and
which have as their object or effect the prevention, restriction or distortion of competition within the common market,
and in particular those which:
(a) directly or indirectly fix purchase or selling prices or any other trading conditions;
(b) limit or control production, markets, technical development, or investment;
(c) share markets or sources of supply;
(d) apply dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a
competitive disadvantage;
(e) make the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which,
by their nature or according to commercial usage, have no connection with the subject of such contracts.
2. Any agreements or decisions prohibited pursuant to this article be automatically void.
3. The provisions of paragraph 1 may, however, be declared inapplicable in the case of:
- any agreement or category of agreements between undertakings,
- any decision or category of decisions by associations of undertakings,
- any concerted practice or category of concerted practices,
which contributes to improving the production or distribution of goods or to promoting technical or economic progress,
while allowing consumers a fair share of the resulting benefit, and which does not:
(a) impose on the undertakings concerned restrictions which are not indispensable to the attainment of these
objectives;
(b) afford such undertakings the possibility of eliminating competition in respect of a substantial part of the products in
question.
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72. F. I. Antritrust law – in Germany, Europe and third countries
Outline
National (GWB) EU + EWR Third countries
GWB Art. 81 ff. EGV Respective national law
- § 1 GWB „Prohibition“ Block exemptions
- § 2 GWB „Exemptions“ leads - Vertical Agreements
- Technology Transfer
to EU Block exemptions
- R&D
- Specialisation
- Vehicle Distribution
- etc.
+ Guidelines
De-minimis Notices
=> market share
(5% / 10% / 15% / 30%) – applied
in Germany as well
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73. F. II. Systematic review is required
System (for vertical agreements)
1 3 4
Restraint? Beyond de minimis? Exemption?
if no free to decide about De-minimis-Note, Marketshare hardcorerestrictions, already
activity for de minimis test of
- < 10 % for Competitors
importance
2 - < 15 % for Non Competitors
Vertical or horizontal?
- < 5 % in cumulative Systems
> 30 % Marketshare of Supplier
between (at least potential)
Competitors Other preconditions on Block
horizontal Exemption for vertical
agreements
different level of production or
distribution (Not-Competitors)
vertical
Definition of relevant market very important
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74. F. III. Typical Restraints
Outline
Price Fixation => hardcore restriction!
Restriction in Territory => depends on active/passive trade and market share
Exclusivity => depends on restriction for buyer or seller and marketshare etc.
Non compete obligations => depends on marketshare and term
etc.
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75. Thanks for your attention!
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