MAY/JUNE 2018
16
INHOUSE
Consider all issues related to
distribution agreements
A distributor relationship typically consists of a distributor purchasing a product from a supplier,
often a manufacturer, for sale to resellers or end users. These end users are businesses that either
resell the product for direct consumption or incorporate it into another product. It is typical for
distributors to carry a range of related or similar products from different suppliers, but usually
within only one industry.
Distributors tend to:
• Have "brick and mortar" assets, which include keeping stock
and inventory and reselling products to end users
• Provide installation, repair, and warranty services
• Sell to other distributors, resellers, or directly to end users
Distributors also typically bear:
• Inventory risk
• The risk of loss regarding goods
• Credit risk related to customers
By Sharmila Irvine, Commercial Transactions Practice Lead, Practical Law Canada
Sharmila Irvine joined Practical Law Canada after
serving as General Counsel for a North American
conglomerate, the Norstar and Concordian Group.
Previously, she was Assistant General Counsel to
a large multinational, the Miller Group. Sharmila
has also held the position of Director of Legal and
Regulatory Affairs and Corporate Secretary for a North
American data and telecommunications company.
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