Selective Distribution Agreement Studying the Law of the European Union and Iranian Law

Abstract

In line with the increasing economic developments and, as a consequence, the expansion of companies in the current post-competitive era, companies have turned to marketing more than ever to gain a competitive advantage. Contracts that have a marketing function can be divided into different types; One of the most common types of contracts is the selective distribution contract. In the EU legal system, the contract is a binding agreement whereby the supplier undertakes to supply products (goods and services) to authorized distributors (distributors who are qualified according to selected criteria) and in return for distribution, the buyer undertakes to resell the products among authorized distributors or final consumers. By concluding selective distribution contracts between the supplier and the distributors, a distribution network is created. This network is called the selective distribution system. Selection criteria are divided into different types: 1) quantitative or qualitative criteria; 2) objective or personal criteria; and 3) commercial or technical competence. The purpose of choosing a selective distribution system is branding, maintaining brand value and maintaining standards and quality in the distribution phase so that the customer gains a quality shopping experience by purchasing the product. In the Iranian legal system, despite the widespread use of the contract, its legal meaning and nature remain unknown and cannot be analyzed in the form of any specific contract, but according to the principle of freedom of contract in Article 10 of the Civil Code, it is accepted.

Keywords

• selective distribution agreement
• supplier
• distributor
• eu law
• iranian law