Vertical agreement, also known as vertical restraint, refers to an agreement between two or more parties in a supply chain that affects the distribution or sale of a product. Vertical agreements can take many forms, including exclusive dealing, resale price maintenance, and territorial restraints. One common misconception about vertical agreements is that they always include certain types of clauses or terms. However, this is not the case as there are several instances when vertical agreements do not include specific clauses or terms.
One example of a vertical agreement that does not include a specific clause is an exclusive dealing agreement. In such an agreement, a supplier agrees to sell a product exclusively to a particular distributor or retailer. However, the agreement may not include a clause that prohibits the distributor or retailer from purchasing or selling other products from other suppliers. In such a case, the exclusive dealing agreement does not include a non-compete clause.
Another example of a vertical agreement that does not include a specific clause is a minimum advertised price (MAP) policy. MAP policies are agreements between a supplier and its resellers that set a minimum price that the resellers can advertise the product for sale. However, the agreement does not prevent the resellers from selling the product at a lower price. In such cases, the MAP policy does not include a minimum resale price maintenance clause.
A third example of a vertical agreement that does not include a specific clause is a territorial restraint. Territorial restraints are agreements that limit the geographic area where a product can be sold. However, the agreement may not include a clause that prevents the supplier from selling the product to customers outside the designated territory. In such cases, the territorial restraint does not include an export ban.
It is important to note that while certain types of clauses or terms are often associated with vertical agreements, they are not always present. The absence of such terms can result in a more flexible and open agreement that may benefit both parties in the supply chain. However, it is also important to ensure that the absence of certain clauses does not lead to anti-competitive behavior or harm to consumers.
In conclusion, when it comes to vertical agreements, it is essential to understand that they can take many forms and may not always include certain clauses or terms that are often associated with them. Rather than focusing solely on specific provisions, it is crucial to look at the overall impact of the agreement on competition and consumers. As a professional, it is essential to ensure that any article on this topic is accurate, informative, and reflects the latest developments in the field.