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

In France, as in most larger countries with a low or average population density, motor vehicle distribution networks are generally organized into a primary network of dealerships and a secondary network of motor vehicle agents.
The motor vehicle agent has no direct legal connection with the manufacturer . The affixing of its signature on the agency contract followed by the mention “for approval” i …

No triangular relationship.

In France, as in most larger countries with a low or average population density, motor vehicle distribution networks are generally organized into a primary network of dealerships and a secondary network of motor vehicle agents.

The motor vehicle agent has no direct legal connection with the manufacturer . The affixing of its signature on the agency contract followed by the mention “for approval” is a mere technical approval that certifies that the agent meets the conditions required to represent its brand . The manufacturer cannot therefore be held liable for the termination, such liability being attributable to the dealer  or the agent if the latter instigated the termination . The manufacturer's liability can only be sought where it is established that it is at the origin of the contractual relationship from which the agent's loss arose  or that the dealer has set up an inter-dependency between the contracts and ensured that the agency contract follows the main contract . Thus, the termination of a dealer agreement can lead to the termination of the independent repairer's agency agreement by reason of their inter-dependency, where the breaches having justified the termination of the dealer agreement undermine the loyalty, confidence and partnership on which the relationship is based . 

Traditionally case law has held that where the contractual notice period is complied with, the termination of the agency contract is not abusive . Now the courts will find that the contractual notice period must however be in relation to the length of the commercial relationship between the parties. It has also been held that there was no sudden termination of the established commercial relationship where a dealer terminated a contract which had been pursued for fifteen years, in giving its agent, who was not in a situation of dependence with respect to the dealer, a six-month contractual notice period . In practice, dealers often give agents the two year' notice as provided by the former motor vehicle regulations. Similarly, a two-year notice period is considered sufficient with regard to an established commercial relationship of sixteen years' duration . In addition, where the two-year notice period is respected, the court does not have to assess the merits of the grounds relied upon by the dealer . However, a dealer whose contract is terminated with two years' notice in the expectation of the proposal of a new contract in compliance with the new motor vehicle regulation and who has, for that reason, terminated the contract binding it to its agent, is guilty of a sudden termination of an established business relationship where it only informs the agent at the end of the notice period given that no new contract will be signed with the latter . However, the fact that a service agent was the only member of the network not to have been offered a new contract is not sufficient to establish the existence of discrimination incurring the contractual liability of the dealer .

Most motor vehicle agent contracts include a stipulation which withdraws the status of commercial agent for the activity of representative for the sale of new vehicles carried out as a secondary activity to that of independent trader for the sale of spare parts and auto repairs. In addition, a vehicle service agent may demand the notice period provided for by Article L. 442-1, II (former Article L. 442-6, I, 5°) of the Commercial Code and not the period provided for in Article L. 134-11 for commercial agents, insofar as the contract describes him as an independent trader who acts in his own name and for his own account, and he acts only in an ancillary capacity as an agent for the sale of vehicles .

T. com. Bordeaux, 8 August 1995, LawLex200200005487JBJ. 

T. com. Bordeaux, 8 August 1995, LawLex200200005487JBJ; CA Rennes, 10 March 2009, LawLex200900000994JBJ.

CA Versailles, 11 September 2018, LawLex201800001264JBJ.

CA Paris, 27 February 2017, LawLex201700000422JBJ.

CA Paris, 27 June 2018, LawLex201800001024JBJ.

CA Paris, 13 October 2016, LawLex201600001692JBJ.

CA Toulouse, 22 June 2004, LawLex200400001670JBJ; CA Bordeaux, 22 April 2003, LawLex200400000499JBJ; T. com. Nanterre, 30 March 2005, LawLex200500005536JBJ; T. com. Lille, 15 April 2009, LawLex200900001731JBJ; CA Paris, 27 February 2019, LawLex201900000285JBJ.

CA Toulouse, 22 June 2004, LawLex200400001670JBJ.

CA Paris, 19 September 2013, LawLex201300001358JBJ.

CA Versailles, 16 October 2007, LawLex200700001583JBJ.

CA Pau, 3 October 2013, LawLex201300001455JBJ.

CA Paris, 15 October 1999, LawLex200300003231JBJ.

CA Rennes, 16 January 2007, LawLex200700000110JBJ.

French Distribution Law

310. No triangular relationship.

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Les décisions de justice citées dans ce paragraphe :

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310. No triangular relationship.

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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