When two enterprises agree to provide services or goods in writing or orally, they enter into a production agreement. A vertical agreement is a relationship between business entities. One of them sells its products, the other - buys. Law that protects competition in the institutional framework works to improve a market economy.
It is impossible to compete with a one-sided influence on trade, but in the existing, meticulously developed law 135 FZ, where the chapters, sections and paragraphs are devoted to the regulation of monopoly relations, the suppression of dishonest events, attention is paid to this phenomenon in trade. With vertical agreements, no antitrust requirements or restrictions apply. Delivery of goods occurs using an indirect method.
What types of monopoly unions exist?
Vertical conventions have variations. During implementation, characteristic features were noted:
- supporting prices during resale when fixing retail prices from the manufacturer or with an upper, lower limit;
- distribute work in a specific area or with specific customers, products;
- restrict competitors from doing business with the manufacturer or wholesale purchaser;
- impose on the intermediary firm the purchase of goods in a certain assortment;
- agree on the purchase of goods in a minimum volume, the limit of which cannot be violated.
Such arrangements mean that the participants are prohibited from other vertical agreements, other than permissible.
Signs of forbidden forms
In economic relations, incorrect behavior between entities is impossible. When by contract:
- Establish the value of the product during its resale.
- The seller requires the buyer not to let competitors enter the market.
Acceptable arrangements are:
- written agreements if they are commercial;
- conclusion of contracts between business enterprises, except for financial organizations, with shares in commodity markets not exceeding 20%;
- actions are coordinated and do not contribute to the elimination of competitors.
The result is:
- Advanced production.
- Effective sales of goods.
- Stimulation of labor on technical, economic progress.
An important sign of exclusive agreements is the increased competitiveness of Russian products in the global market.
What do the terms mean?
The trading system will not work effectively without the basic tools - its performers. For example, dealers began to call implementers. These include firms or individuals who purchase goods in bulk, then sell them. Distributors are participants in transactions, the same traders, but they work on behalf of the manufacturer. Dealer agreements are concluded by the parties with the obligation:
- acquisition of goods, promotion and sale, the territory of which is limited by the contract;
- providing products only to the dealer without distributing the goods on their own or to third parties.
What are the rules?
Drawing up a contract provides for the rules:
- reflection of the list of certain products;
- establishing exclusive rights to the territory.
Exclusivity indicates the territorial framework and the specific supplier with whom the dealer agreement is concluded. The contract contains detailed instructions:
- in content;
- rights and obligations of the parties;
- document exchange procedure;
- product delivery time.
If the agreement does not contain rules on the procedure for fulfilling the obligations undertaken, they are equivalent to a normal business contract for the circulation of material assets.
What governs the law?
Legal protection of competition is extended to business entities and public authorities. It affects healthy rivalry. The law established the rules for state and municipal preferences with the obligatory approval of the antimonopoly body in a transparent system. For violations laid responsibility. Competition is a delicate area, in it the law establishes restrictions and prohibitions on unfair competitions. They cause damage, infringe rights and lead to bankruptcy.
How is rivalry classified?
An agreement between business entities in any case leads to competition. Competition in economic parameters, productivity and level of implementation is a normal business aspiration. Economists singled out competitions on large-scale indicators:
- local - in a specific territory;
- individual - a market representative chooses comfortable conditions for implementation;
- industry - enterprises compete to generate revenue;
- intersectoral - representatives fight for buyers;
- national - regional manufacturers compete;
- global - companies of global importance compete.
The success of competitors depends on many criteria. This may include the technical equipment of enterprises, transport, energy, communications.
The rigor of labor relations on the example of LADA
Sales success is largely dependent on the seller of the goods. If we consider the example of car dealerships, for example, a Lada dealer must work in accordance with the new rules established by AvtoVAZ’s directorate. The administration is trying to increase sales in the face of enormous competition. She developed not only the mode of operation of shopping centers, but also a beautiful decoration of the premises, powerful advertising. The dealer must:
- be financially disciplined;
- to coordinate advertising with the plant management;
- pursue a warranty policy;
- to develop and communicate to the customers the shares of the service.
The main requirement for the seller is the lack of gray sales. The conditions from the leadership are put forward, where it must be:
- client parking;
- clean interior, building facade, car models;
- use of company flags;
- set a dress code for employees with a mandatory appeal to customers politely and friendly.
The dealer must have a stock of marketing materials with original spare parts. The employee carries out his activities on the basis of a dealer agreement with AvtoVAZ management.
Feature of the obligations of the parties
The employee concludes an agreement stating obligations:
- selling products at the cost specified in the agreement;
- carry out the advertising procedure according to the rules established by the seller;
- account for buyers in a special magazine;
- report;
- politely serve customers;
- keep trade secrets.
The seller must:
- provide products in the declared quantity;
- bring information about changes to the goods;
- conduct training courses;
- provide a model for presentation.
Payment and transfer
In the annex to the agreement indicate:
- price;
- quantity;
- Payment Methods;
- methods of product delivery.
The contract reflects the provision of customers with possible discounts and bonuses. It is necessary to describe the penalties, deductions, if there are violations of the obligations undertaken. The document is signed by both parties, this indicates agreement with all clauses of the agreement. Details can be found in the sample.
The parties may terminate the agreement if one of the following occurs:
- dealer has violated copyrights;
- products are not provided to customers under conditions developed by company management;
- the distributor divulged trade secrets;
- delay in transferring cash for a sale;
- production ceased.
Dealer claims:
- terms and conditions of product delivery are violated;
- the obligations undertaken by the seller are not fulfilled.
At AvtoVAZ, dealers are accepted after agreement with the commission. The employee develops activities of his activities, the intentions are indicated in the protocol. Eliminates possible non-compliance with standards. Control over the work of car dealerships is carried out by special units of the company.
In this case, the agreement, although it fits under Federal Law No. 135, does not represent the parties as competing, this is an example for paragraph 19 of Article 4 of the Federal Law "On Protection of Competition", where one party to the agreement is the buyer of the goods, and the other is its producer. This part of the legislative act states the existence of good faith between the parties and their relationships.