Originally from:
Advising Minnesota Corporations and Other Business Organizations - 2nd Edition - Hardcover
Advising Minnesota Corporations and Other Business Organizations - 2nd Edition - Electronic
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CHAPTER 68
CORPORATE MARKETING AND
DISTRIBUTION NETWORKS
Section
§ 68.01 Common Forms of Distribution of Goods and Services, and Legal
Consequences Generally
§ 68.02 Distribution Channels
§ 68.03 --Agents
§ 68.04 --Wholesalers
§ 68.05 --Retailers
§ 68.06 Licensing
§ 68.07 Franchising
§ 68.08 Statutory Law Implications--Federal Laws and Regulations
§ 68.09 --Minnesota Regulation
§ 68.10 --Sales Representatives
§ 68.11 --Franchises
§ 68.01 Common Forms of Distribution of Goods and Services, and
Legal Consequences Generally
Producers of goods and services have traditionally used one or several
intermediate entities in an effort to distribute their products. However, in
recent years, some producers have restructured their distribution
channels in an attempt to reduce costs in addition to several other goals.
Additionally, services necessarily require a different form of distribution
than goods. These various forms of distribution, and their general legal
consequences, are the subject of this section.
§ 68.02 Distribution Channels
In any distribution channel there is a producer at the front end and a
consumer at the back end. The transfer of a product from producer to
consumer may be direct, or it may involve a combination of one or
several intermediate parties. Generally, these intermediate entities are
agents, wholesalers, distributorships, dealers, franchises, and retailers. In
some cases, the producer may own all or part of the distribution channel.
§ 68.03 --Agents
Under an agency relationship, the agent does not own the product, but
merely represents the producer in selling such product. Generally, the
agent that most persons are familiar with is the sales representative. A
producer will usually pay its sales representative a percentage of the
sales price of the product. Legally, both the agent and the producer may
be found liable for faulty products and misrepresentations. In 2004, the
Minnesota Supreme Court held that "a supplier has a duty to warn end
users of dangerous products if it is reasonably foreseeable that an injury
could occur in its use."1
Roger J. Magnuson is a Partner at Dorsey and Whitney, LLP, where he serves as Head of the National Strategic Litigation Group and has practiced since 1973. He has been recognized as one of the top trial lawyers in the United States by major national and international publications, including Chambers International Guide to American Lawyers, which profiles the top 500 trial lawyers in the United States, Best Lawyers in America, Who's Who in American Law, and Who's Who in America. Mr. Magnuson was also recognized by a Journal of Law and Politics' survey for Judge's Choice "Wins Most Cases."
Some high profile cases that he has litigated include representation of the Florida Senate in the Bush v. Gore election controversy in 2000; and representation of the Plaintiffs in the widely publicized and studied Mall of America case. For several years he has represented, among other persons and entities, the Minnesota Twins and Major League Baseball principals and players in litigation; and has litigated national and local cases in federal and state court venues. He has appealed before the Supreme Court in a number of cases; as well as the Minnesota Supreme Court. He has authored several articles and 7 books.
Richard A. Saliterman is a Principal in Saliternan & Siefferman P.C., a full-service firm in Minneapolis established in 1976. Mr. Saliterman is a leading expert on corporate business matters, and is the author of several publications on business start-ups, franchises, and trademarks. Mr. Saliterman is the former National Judge Advocate for the U.S. Navy League, based in Washington D.C.
Contributing Editor:
Amanda Chang
Contributing Authors:
Alecia Anderson
Seth Back
John Baker
Shannon Berg
Constatin Burachek
Benjamin Carpenter
Ryan Check
Carl Christensen
Peter Fear
Michael Frasier
Aaron Hall
Catherine Hanson
Paul Harman
Amy Ithlan
Michael Kern
Chris Kuhlman
Brett Larson
Joshua Lederman
Karen Lundquist
James Magnuson
Jennifer Mead
Rao Menier
Heidi Miller
Rachael Moxon
Oliver Nelson
Scott Peitzer
Mitchell Skinner
Jonathan Stechmann
Lael Weinberger
Jonathan Wilson
Alex Zumbulyadis
