Entering the German market with Authorized Dealers
Co-operation with Authorized Dealers is of growing importance in all commercial cross-border relationships as it is a cost-effective way to enter new markets. International operating companies further extend their own distribution networks which often encompass a high number of licensed dealers.
No restrictions by German civil law
The legal content of this relationship is not restriced by a specific German civil law as this contract form was developed in the practical business life. The parties have the freedom to design the contracts according to the business needs and to the capacities of the dealer. Of course the general German legal business frame such as anti-trust regulations etc. will have to be respected.
Function of the authorized dealer compared to commercial agents
The authorized dealer as a distributor is subject to less control of the principal in comparison to a commercial agent as he sells and imports by himself and thus takes risks by shielding the foreign principal against warehouse and storing costs as well as the risk of non-payments of customers.