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Article L441-17 of the French Commercial code

I.-The contract may provide for penalties to be imposed on the supplier in the event of non-performance of contractual commitments. It must allow for a sufficient margin of error in relation to the volume of deliveries provided for in the contract. Sufficient time must be allowed to inform the other party in the event of a contingency. The penalties imposed on the supplier by the distributor are proportionate to the…

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Article L441-18 of the French Commercial code

If the distributor fails to fulfil a contractual commitment, the supplier may impose penalties. These penalties are proportionate to the damage suffered as a result of the non-performance of contractual commitments, up to a ceiling equivalent to 2% of the value, within the order, of the category of products ordered concerned by the non-performance of the said commitments. Proof of breach must be provided by the supplier by any means….

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Article L441-19 of the French Commercial code

For the application of articles L. 441-17 and L. 441-18, a guide to good practice is published and updated regularly. Each distributor shall communicate to the Director General of Competition, Consumer Affairs and Fraud Control or his named representative, by 31 December each year at the latest, the amounts of the logistical penalties it has imposed on its suppliers over the last twelve months as well as the amounts actually…

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Article L442-1 of the French Commercial code

I.-Any person engaged in production, distribution or service activities, in the context of commercial negotiation, the conclusion or performance of a contract, is liable and obliged to compensate the damage caused: 1° Obtaining or attempting to obtain from the other party an advantage corresponding to no consideration or manifestly disproportionate to the value of the consideration given; 2° Subjecting or attempting to subject the other party to obligations creating a…

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Article L442-2 of the French Commercial code

Ingages the liability of its author and obliges him to compensate the damage caused the fact, by any person engaged in activities of production, distribution or services to participate directly or indirectly in the violation of the prohibition on resale outside the network made to the distributor bound by a selective or exclusive distribution agreement exempted under the applicable rules of competition law.

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Article L442-3 of the French Commercial code

Clauses or contracts providing for any person carrying out production, distribution or service activities the possibility: a) To benefit retroactively from discounts, rebates or commercial cooperation agreements; b) To benefit automatically from more favourable conditions granted to competing undertakings by the co-contractor; c) To prohibit the co-contractor from assigning to third parties claims that it holds on it.

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Article L442-4 of the French Commercial code

I.-For the application of articles L. 442-1, L. 442-2, L. 442-3, L. 442-7 and L. 442-8, the action is brought before the competent civil or commercial court by any person proving an interest, by the public prosecutor, by the minister responsible for the economy or by the chairman of the Competition Authority when the latter finds, in connection with cases falling within its jurisdiction, a practice mentioned in the aforementioned…

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Article L442-5 of the French Commercial code

I.-Any trader who resells or advertises the resale of a product in its unaltered state at a price lower than its actual purchase price is liable to a fine of €75,000. This fine may be increased to half the advertising costs if an advertisement, regardless of the medium, mentions a price lower than the actual purchase price. The cessation of the advertising may be ordered under the conditions set out…

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Article L442-7 of the French Commercial code

A buyer of agricultural products or foodstuffs who allows his supplier to charge an unfairly low transfer price incurs liability and is obliged to compensate the damage caused. To characterise an unfairly low transfer price, account is taken in particular of the production cost indicators mentioned in articles L. 631-24, L. 631-24-1, L. 631-24-3 and L. 632-2-1 of the French Rural and Maritime Fishing Code or, where applicable, any other…

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