Section 4: Logistical penalties

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…

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….

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…