You are a newly qualified solicitor in the law firm New Solicitors LLP

You are a newly qualified solicitor in the law firm New Solicitors LLP. You recently met Steve Whitworth, themanaging director of Fashion House Limited (FHL). FHL makes products for the fashion industry. During themeeting, Steve Whitworth informed you that there is a market for such products in European countries. In theshort term, FHL is focusing on Poland and Lithuania where it already has around 25% of the market share viadirect sales. FHL intends to use distributors for its further expansion into Poland and Lithuania.FHL wants to include the following terms in its agreements with its Polish and Lithuanian distributors:1. The distributors have territorial exclusivity, but can only sell within their defined territories.2. The distributors are not permitted to sell FHL’s products for less than the sums specified in thedistribution agreements.Assessment Brief – Northumbria School of LawPage 6 of 63. The distributors must not purchase similar products from other manufacturers during the course of thedistribution agreements and for 5 years after termination.FHL does not qualify as an SME for the purposes of EU competition law.
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