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 Arkansas, dealer and distributor relationships with manufacturers are typically governed by written agreements that outline the terms and conditions of their business interactions. These agreements may include provisions for minimum advertised pricing (MAP), territorial rights, exclusivity, and other obligations. Arkansas state statutes and federal law may also apply to these relationships, particularly in areas such as antitrust regulations, consumer protection, and contractual obligations. Dealers, as authorized resellers, may operate retail stores or online e-commerce platforms and can carry products from multiple manufacturers, unless restricted by their dealer agreements. Distributors, on the other hand, often have exclusive rights to distribute a manufacturer's products within a specified geographic area. It is important for both dealers and distributors to understand and comply with the terms of their agreements as well as applicable state and federal laws. An attorney with experience in commercial law can provide specific guidance on these matters, including the drafting and review of dealer and distributor agreements to ensure compliance and protect the interests of the business.