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 Alaska, as in other states, dealers and distributors operate under agreements that define their relationship with manufacturers. Dealers purchase products from manufacturers or distributors to resell them, either in physical retail locations or online. They may carry a variety of competing products or be limited to certain brands based on their dealer agreements. Distributors, on the other hand, are granted the exclusive rights to distribute a manufacturer's products within a specified geographic area and typically supply products to dealers. The contractual agreements between dealers or distributors and manufacturers often include terms such as minimum advertised pricing (MAP) policies, territorial rights, and other conditions that govern the sale of the manufacturer’s products. These agreements are crucial as they outline the obligations, rights, and limitations of all parties involved. It's important to note that while these practices are generally governed by contract law, specific state statutes and federal laws, such as antitrust regulations, may also apply to ensure fair competition and prevent monopolistic practices.