District of Columbia Sales Agency Agreement with Agent and Client being Business Competitors in Same Market
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How to fill out Sales Agency Agreement With Agent And Client Being Business Competitors In Same Market?
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FAQ
The reason that you shouldn't discuss it is that market-allocation agreements are one of the few types of conduct that the antitrust laws consider so bad they attach the label per se antitrust violation. The other per se antitrust offenses are price-fixing, bid-rigging, maybe tying, and sometimes group boycotts.
Certain acts are considered so harmful to competition that they are almost always illegal. These include arrangements to fix prices, divide markets, or rig bids.
According to the Federal Trade Commission, market allocation means: Plain agreements among competitors to divide sales territories or assign customers are almost always illegal. These arrangements are essentially agreements not to compete: I won't sell in your market if you don't sell in mine.
Guide to Antitrust LawsPlain agreements among competitors to divide sales territories or assign customers are almost always illegal. Similarly, plain agreement among competing employers to not solicit or hire each other's employees are an unlawful allocation of employees in a labor market.
3.10 For example, non-reciprocal vertical agreements between competing undertakings are permitted where the supplier is a manufacturer and distributor of goods, whilst the buyer is a distributor that does not manufacture goods competing with the contract goods.
A: No. Matching competitors' pricing may be good business, and occurs often in highly competitive markets. Each company is free to set its own prices, and it may charge the same price as its competitors as long as the decision was not based on any agreement or coordination with a competitor.
For the most blatant agreements not to compete, such as price fixing, bid rigging, and market division, the rules are clear....Guide to Antitrust LawsBid Rigging.Group Boycotts.Market Division or Customer Allocation.Other Agreements Among Competitors.Price Fixing.Spotlight on Trade Associations.
For example, one competitor will be allowed to sell to, or bid on contracts let by, certain customers or types of customers. In return, he or she will not sell to, or bid on contracts let by, customers allocated to the other competitors.
In the United States, this type of activity is forbidden by the Uniform Trade Secrets Act and the Economic Espionage Act of 1996.
Anti-competitive agreements are agreements among competitors to prevent, restrict or distort competition.