Is signing an exclusive representation and distribution agreement the same in a foreign country as the US?
No. Carefully scrutinizing potential export sales representatives is always a wise investment as any problems that arise are often more difficult to address due to barriers caused by distance, language, culture and legal differences. In addition, non-performing export sales representatives can be costly to terminate and replace. The ability to terminate a agency or distributor agreement will be subject to local country laws which are often different from those in the US. These may restrict termination options or provide for substantial payments of compensation, and failure to follow local termination laws may result in complete denial of future import privileges by a host country. It is therefore important to seek advice from legal counsel with host country experience prior to signing any exclusive representation or distribution agreements.
