2 March 2020

Exclusive distribution: Lawfulness of sale outside network
The incumbent distributor of a product, which has become a non-network third party following the creation of the latter and the decision not to integrate it, does not commit an act of unfair competition towards the exclusive distributor by purchasing lawfully from foreign resellers and reselling the products under conditions that do not affect its image.
CA Toulouse, 12 February 2020, LawLex20200000242JBJ

Exclusive distribution: Lawfulness of sale outside network
The exclusive distributor of a product commits disparagement with regard to third parties to the network by falsely claiming on its website that products purchased from the latter are not covered by the manufacturer’s warranty and that they may be selling illegal copies.
Toulouse, 12 February 2020, LawLex20200000242JBJ

Exclusive distribution: Insufficient results
The failure of the distributor to meet its best-efforts obligation despite receiving letters of formal notice from the supplier constitutes a breach which is serious enough to justify a termination without notice even in the absence of any specific sales targets.
CA Paris, 12 February 2020, LawLex20200000222JBJ

Franchise: Franchise and employment contract
The limits placed on the franchisee’s autonomy do not establish a relationship of subordination capable of justifying a reclassification of the agreement as an employment contract when the sole purpose of such limits is to ensure the franchisor’s ongoing success by the adherence to its know-how.
CA Limoges, 3 February 2020, LawLex20200000213JBJ