1. ISSUES AFTER SERVICE OF NOTICE OF TERMINATION TO DEALER/DISTRIBUTOR
Osvaldo J. Marzorati

2. MULTIPLE SCENARIOS (Notice covering a term of 3 months or more)
Termination for non renewal (contracts for a definitive period of time)
Termination for cause (term of the contract indefinite or definite)
Termination for unilateral decision of each party under a clause of the Dealer Agreement
Termination by any party in distribution contract contemplating indefinite term (unilateral as well)
© Allende & Brea, 2007

3. B. MOTIVATION OF THE PARTIES - PRINCIPAL
Failure of dealer after being called his attention to increase sales targets or poor performance in many areas
Interest to switch distributorship to an apparent more friendly dealer or a friend of the house
Personal dislike of distributor by overseas manufacturer representative
© Allende & Brea, 2007

4. C. MOTIVATION OF PARTIES - DEALER
Lack of faith in product evolution or manufacturer future
Interest to move to distribute a more aggressive competitive product or a new one
Serious clashes with overseas representative of manufacturer
© Allende & Brea, 2007

5. D. PARTICULAR ISSUES FOR PRINCIPAL
Continuance of supply of products
Non supply of new products
Disputes on warranty on defective products
Terms of sale of supply of spares parts, if applicable
Cut of quality campaigns
Search and contacts with prospective replacement of dealer
Advertising
Disclosure in media of termination notice
© Allende & Brea, 2007

6. E. SPECIAL ISSUES FOR DEALER DURING TERM OF TERMINATION
Consideration of sales of stock
Consideration on sale of new products
Resizing of business
Search for a new business
Reduction of personnel
Early termination of leases
Attempt to reduce operative costs
Analysis of possible settlement terms or litigation
© Allende & Brea, 2007

7. F. CONFLICTING ISSUES FOR DEALER AND PRINCIPAL
Supply of products with non-delivery or acceptance of old lines, non-salable colors and the like
Cuts on advertising and restrictions in delivery of spares or its permanent terms
How to address disposal of special tooling or machinery
Appearance of prospective new dealer who announces date of opening with new products
Attempt to block through court action appointment of new distributor
© Allende & Brea, 2007

8. G. ON TERMINATION OF PERIOD PROVIDED BY NOTICE
Disclosure of media termination unilateral or bilateral (settlement)
Announcement of new distributor to take over area or territory
Issue of disposal of stock
Dismissal of personnel
Hiring experts to evaluate damages originated in termination
Decision to sue principal for value of loss and damages caused by termination
© Allende & Brea, 2007

9. BUENOS AIRES OFFICE Maipú 1300, Piso 10 (C1006ACT) Buenos Aires Argentina Tel: (54-11) Fax: (54-11)
MIAMI OFFICE Representative Office Four Seasons Tower, Brickell Avenue, Suite Miami, Florida Tel: (305) / Fax: (305)