Document background
The Authorized Distribution Agreement is essential for businesses looking to establish formal distribution channels in Austria and potentially other EU markets. This document is typically used when a manufacturer or supplier wants to appoint an authorized distributor to sell their products within a specific territory while maintaining certain quality standards and brand consistency. The agreement must comply with Austrian commercial law, including the Austrian Commercial Code (UGB) and relevant EU regulations, particularly competition law and the Vertical Block Exemption Regulation. It covers crucial aspects such as exclusivity rights, territory definitions, minimum purchase obligations, pricing structures, and product warranties. This type of agreement is particularly important for foreign manufacturers entering the Austrian market or Austrian companies expanding their distribution networks, as it provides a clear legal framework for the distribution relationship while ensuring compliance with local and EU regulatory requirements.
