The following Commercial practice note provides comprehensive and up to date legal information covering:
Brexit: As of exit day (11pm on 31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. This has an impact on this Practice Note. For further guidance, see: Brexit Bulletin—key updates, research tips and resources and Brexit toolkit.
Agency and distribution are examples of channels to market: means by which a manufacturer, producer or an intermediary, such as a wholesaler, gets its products to end-user customers. Other channels to market include direct sales (where sales staff are employed directly by the manufacturer) or where the manufacturer sells at a distance (eg via the internet), entering into a joint venture with a local business, and franchising (which has many features in common with distribution). For further details on franchising see Franchising—overview.
This Practice Note compares sales agents, who procure (and often conclude) contracts with customers for their principal, with distributors. Sales agents also commonly handle marketing. Other common types of agent in commercial matters include freight forwarding agents and media agents who represent media or sports personalities.
Distribution has certain features in common with agency, but the legal structure is different. A distributor buys from a manufacturer and sells as independent principal, applying a mark-up to the manufacturer's sale price
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Unlike many other countries, the UK has no unfair competition law. Brand owners seeking to prevent competitors from marketing ‘copycat’ products or using misleading advertising have to rely on a combination of different intellectual property rights. These rights include the common law right to
The roles of nominated officer and money laundering reporting officerA nominated officer is an individual who is nominated by a firm to receive disclosures under Part 7 of the Proceeds of Crime Act 2002 (POCA 2002) or Part III of the Terrorism Act 2000 (TA 2000)—see Requirement to appoint a
Having established that a duty of care exists (see Practice Note: Negligence—when does a duty of care arise?), it is then necessary to consider whether or not there has been a breach of that duty. This will depend on a number of factors outlined below and considered against the general background of
Background to the Single RulebookHistorically, the European Commission (Commission) favours using Directives (rather than Regulations) to set out its legislation in respect of the financial services sector. However, Directives, allowing Member States greater flexibility in how they implement
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