| Abstract [eng] |
The master thesis “Comparison of Aspects of Goods Distribution on Basis of Agency, Distribution and Franchise Agreements:Advantages and Disadvantages” analyses terms of agreements of four different types, introduces and evaluates requirements set forth in national laws and laws on competition when distribution of goods is pursued on the basis of the aforesaid agreements. The first part of the thesis is dedicated to analysis of distribution of goods as a form of carrying a business, as described in the economic doctrine, revealing opportunities of implementation of this scheme through independent representatives – sales agents, salesmen, or independent business entities such as distributors or franchisees. With reference to the economic doctrine, there are indicated both the basic implementation means and analogies of their content with that of the four legal agreements, i.e., sales agency, commission, distribution, and franchise agreements. Comparative analysis of the aforesaid agreements is presented in the other parts of the thesis, goals of business entities, distribution of risks between the parties, and, finally, specific restrictions and guaranties regulated by legal norms being the main and fundamental criteria in choosing a particular scheme of goods distribution. Accordingly, in those cases when business entities choose to pursue their activities associated with goods distribution through independent agents but still determine to supply those goods to consumers directly, the most appropriate scheme would be implementation of business strategies through sales agents and salesmen by concluding agency agreements obligating the represented party to assume full risks for fulfilment of contractual terms. However, if manufacturers and suppliers endeavour to transfer their activities of goods distribution to the other business entities, along with all risks associated therewith, distribution agreements would be the most attractive and advantageous choice for consolidation of business. Franchise is recommended if manufacturers or suppliers wish to become benefit from intellectual property rights, know-how practice and operating methods emerging in connection with their activities, without additional investments into such activities. By analysing the other aspects of agreements in addition to the aforesaid principal contractual terms, the author of this master thesis endeavours to compare different agreements and to point out advantages and disadvantages which depend on contractual terms and which encourage or discourage undertaking business on such a basis. For achieving the aforesaid purpose, the reference is made to the legislation of the Republic of Lithuania, as well as to provisions of the European Community regulations and directives and their interpretations provided in the legal literature. |
