Exclusive distribution: The Versailles Court of Appeal develops a new reasoning on the full compliance with conditions of the exemption prescribed by the Automobile Regulation 1400/2002 regarding the application of the commercial code’s provisions regarding sudden break of business relations (BMW France)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. Two rulings handed down in quick succession, respectively by the Limoges Court of Appeal on 9 February 2012 and by the Versailles Court of Appeal on 4 September 2012, provide an answer, to our knowledge, that is unprecedented in this area. In both cases, the facts of the case are similar. When Regulation EC 1400/2002 was adopted, manufacturers had the possibility of choosing to conclude with their distributors either open-ended or fixed-term dealer contracts for a period of five years, with the first solution requiring compliance with a 24-month notice period, while the second solution required compliance with a 6-month notice period. The car manufacturer BMW,