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 North Carolina, 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. Dealers act as intermediaries, purchasing products from manufacturers or distributors to resell to customers, either in physical retail locations or online. They may carry a variety of competing products from different manufacturers, unless their dealer agreements impose restrictions. Distributors, on the other hand, are often granted the exclusive right to distribute a manufacturer's products within a specified geographic area. They supply products to dealers, who then sell to the end customer. The specifics of these relationships are dictated by the dealer or distributor agreements, which are legally binding contracts. It's important for dealers and distributors in North Carolina to understand and comply with the terms of these agreements, as well as any relevant state statutes and federal laws that may apply to their operations.