Successful international distribution contracts begin well before the drafting stage, starting with business due diligence and distributor selection. Upfront business due diligence, such as assessing the ability of the distributor to support the sales of the product, knowing the basic local legal landscape and ensuring the distributor has an understanding the US Foreign Corrupt Practices Act (FCPA), is paramount to an effective long-term distribution strategy. In this chapter from Thomson Reuters®’ Aspatore Inside the Minds series, author and Squire Patton Boggs Partner Jeff Wahl discusses myriad considerations US companies must carefully weigh and assess to identify the business fit between their company and the distributor. Jeff further provides a detailed walkthrough of the distribution contract process, what to expect and the elements of a strong contract. The chapter shares how to avoid common pitfalls and the complications that arise during the contract drafting stage, or as Jeff calls it, the stage “when the lawyer is usually brought in”.
This chapter appearing on this Web site is provided with permission of Thomson Reuters®, Aspatore “Inside the Minds” series, Copyright 2015.