This book provides a wide-ranging review of the European rules relating to distribution: exclusive purchase and exclusive supply, exclusive and selective distribution, motor vehicle distribution, franchises, commercial agents.

French Distribution Law

The prohibition of sale to third parties outside the network was authorized under Regulation No 1400/2002 only if the manufacturer had chosen a system of selective distribution . Since virtually all suppliers have adopted selective systems, the ban on sale to third parties outside the network is now general in the motor vehicle sector. The regulation on vertical restraints, which has applied to the activity of the selling of new vehicles since 1 June 2013, also includes the prohibition . The previous case law will therefore still be relevant.

The trial courts from the early days validated refusals to sell against dealers reselling vehicles to third parties outside the network  as well as clauses prohibiting dealers to resell to third parties outside the network both new and unused registered vehicles , with the termination clauses for resale outside the network sanctioning in particular the sale of motor vehicles to intermediaries without verifying the existence of a mandate provided by an end-customer , and refusals to authorize distributors within the new network if they had resold outside the network . A manufacturer may even validly deduct from the dealer's account bonuses obtained in respect of sales of vehicles made in breach of the prohibition on resale to third parties outside the network .

Regulation No 1400/2002 of 31 July 2002, Article 4(1)(b)(iii).

Regulation No 2022/720 of 10 May 2022, Art. 4(c)(i)(2).

Cass. com., 11 October 1994, LawLex200200005415JBJ.

CA Paris, 27 May 2009, LawLex200900003129JBJ, quashing T. com. Paris, 10 January 2008.

TGI Paris, 13 October 1993, LawLex200200004792JBJ; CA Paris, 31 May 1995, LawLex200200005470JBJ; 16 May 2019, LawLex201900000643JBJ; cf. where there was a mandate, T. com. Dijon, 30 June 2003, LawLex200300004308JBJ.

T. com. Dijon, 25 September 2003, LawLex200300003998JBJ.

CA Paris, 16 May 2019, LawLex201900000643JBJ.

277. Ban on sale to third parties outside the network.