A dealer is a business that buys products to resell in the course of its business—placing the products in inventory and selling them in a retail store or online in e-commerce. A dealer is a middleman between the distributor and the customer and is an authorized seller of the manufacturer's products in a particular geographic area—sometimes nationwide.

A dealer may sell competing products from different manufacturers or brands, or may be restricted by its dealer agreement with the manufacturer.

Distributors

A distributor has the exclusive right to distribute products in a certain geographic area. A distributor is usually selected by the product manufacturer to sell the product for the manufacturer to dealers in a certain geographic area.

Dealer and Distributor Agreements

The terms under which a dealer or distributor may sell the manufacturer’s products are usually governed by a written contract that may provide for minimum advertised pricing (MAP) and other important terms.

In Ohio, dealers and distributors operate under commercial laws that govern the sale and distribution of products. Dealers are businesses that purchase products to resell them, either in a physical retail environment or online. They act as intermediaries between distributors or manufacturers and customers, and they may be authorized to sell certain products within a designated geographic area. Dealers can carry products from multiple manufacturers or be limited to specific brands based on their dealer agreements. Distributors, on the other hand, have exclusive rights to distribute products within a certain area and are typically appointed by the manufacturer. Dealer and distributor agreements in Ohio are legal contracts that outline the terms of the relationship, including aspects like minimum advertised pricing (MAP) and territorial rights. These agreements are subject to state contract laws and the Uniform Commercial Code (UCC) as adopted in Ohio, which regulates commercial transactions. It's important for dealers and distributors to ensure that their agreements comply with federal and state antitrust laws to avoid practices that could be considered anti-competitive.