Multi-year contract, terminable only for good cause?
Clear performance standards with a right to cure breaches?
An equity payment if the dealership is terminated with good cause?
Right to transfer or assign the dealership?
Exclusive appointments?
The answer is the Model Manufacturer/Dealer-Reseller Contract.
The Model Manufacturer/Dealer-Reseller Contract - NAGASA Standard 1994-1 - began in July 1994 at a summer NAGASA meeting of dealers and manufacturers representatives that recognized the distribution channel had changed and a model contract needed to be developed.
Over six months an intensive industry-wide effort took place led by Allan P. Hillman, a contracts attorney.
Use the Model Contract -
- Many manufacturers and dealers currently have contracts in place and may want to use the clauses and contract language found in the Model to strengthen their existing contract document.
- You may want to take advantage of the legal protections the Model Contract offers, the ideas its presents about different levels of service and the completeness of addressing issues related to service and maintenance agreements.
- By its nature, the Model Contract is a synthesis that is not favorable to either manufacturer or reseller. It reflects an effort to arrive at an agreement which is fair and reasonable to all parties.
With background information to make an informed decision
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After each provision, where appropriate, are commentary, reflecting why
certain language was included or was not included, as a result of the views
of the members involved in development of the model contract.
For your convenience -
NAGASA provides the Model Manufacturer/Dealer-Reseller Contract as a printed 5 1/2" x 8 1/2" booklet or on disk to format easily.
For more information on any of the NOWavailables,
please contact NAGASA: (202) 328-8441 or email: information@nagasa.org
