1E9Ct5D

CHAPTER IXCommercial Regulation1. Forms of Commercial DistributionIn today’s commercial relations the majority of producers do not sell their products orprovide their services directly to the final users. Between them there are intermediariesthat perform a large variety of functions intended to facilitate and expedite such commercialrelations.In this section the most common forms of commercial intermediation, such as the distributionagreement, the agency, and the franchise, will be described. These forms ofcommercial intermediation, given their purpose, have several characteristics in common,including, to a lesser or greater extent, the management of the interests of others. Furthermore,it is important to mention that while these contracts are not specifically regulatedunder Mexican law, the individual nature of each of them presents particularitiesthat distinguish them and that business persons should be aware of in order to fullyaddress their interests and specific needs.1691.1. DistributionThe distribution agreement is an agreement by which a person called a distributor agreesto acquire and resell the products of another, called the producer or principal, under theresale terms and conditions that the latter imposes.The purpose of the distribution agreement is to regulate relations among producers ormanufacturers and the persons who, under certain resale conditions, will market theirproducts.In contrast to the agency agreement, not merely the interests of others are being managedunder the distribution agreement; rather, the distributor purchases and acquires theproducts in order to resell them on his own behalf to the consumer, under the conditionsthat the distributor himself establishes. The principal is generally a business owner whomanufactures the products contemplated in the contract (although not necessarily). The