The German Federal Court of Justice decides on the effects of legal changes brought by EC Reg. 1400/2002 on automobile distribution networks (BMW)

Facts The plaintiff was a former authorised distributor of the defendant automobile manufacturer Bayerische Motorenwerke AG (BMW). In 1996, the plaintiff entered into a contract with BMW for the distribution of motor vehicles manufactured by BMW. This contract was based on a standard clause used by the defendant. Article 11.6. of the contract provided : “11.6. Termination due to reorganisation of the distribution network Where it is necessary for BMW to reorganise the whole or a substantial part of its distribution network, BMW may terminate the contract with 12 months' notice. The above shall also apply where the regulatory framework of the contract changes in essential respects.” In September 2002, BMW terminated all of its distribution agreements within its European network with

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Petra Linsmeier, Moritz Lichtenegger, The German Federal Court of Justice decides on the effects of legal changes brought by EC Reg. 1400/2002 on automobile distribution networks (BMW), 8 May 2007, e-Competitions May 2007, Art. N° 27312

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