CASE COMMENT : DISTRIBUTION - AUTOMOBILE CONTRACT - CONTRACT FOR AN INDEFINITE PERIOD - TERMINATION - REDUCED NOTICE PERIOD OF ONE YEAR

Motor vehicles distribution : The French Supreme Court rules that an automobile supplier in the process of reorganizing its entire distribution network may terminate its distribution agreements on an abbreviated one-year’s notice at any time during the process (Daimler Chrysler/Garage de Bretagne)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. Cass. com, 6 March 2007, Garage de Bretagne v. Daimler Chrysler France, Appeal No. 05-13.991 Facts A car licensor, reorganising its entire network since 2000, had notified one of its exclusive dealers of the termination of its contract by giving one year [1]'s short notice in 2002, due to the forthcoming entry into force of Regulation 1400/2002 [2]. The concessionaire sued the licensor for damages equal to one year's gross margin for improper termination of the concession agreement. The Versailles Court of Appeal rejected the concessionaire's claim and the concessionaire

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Dominique Ferré, Motor vehicles distribution : The French Supreme Court rules that an automobile supplier in the process of reorganizing its entire distribution network may terminate its distribution agreements on an abbreviated one-year’s notice at any time during the process (Daimler Chrysler/Garage de Bretagne), 6 March 2007, Concurrences N° 2-2007, Art. N° 27855, www.concurrences.com

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