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 Wisconsin, 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 restrictions, and other obligations. Wisconsin law does not have a specific statute that governs dealer or distributor agreements across all industries, but certain types of dealers, such as motor vehicle dealers, are subject to specific regulations under state law (e.g., Wisconsin Statutes Chapter 218). Additionally, Wisconsin's Fair Dealership Law (Wis. Stat. § 135.01 et seq.) provides protection to dealers against unfair treatment by grantors, requiring good cause for the termination, alteration, or non-renewal of dealership agreements. This law applies to any dealership where there is a community of interest in the business of offering, selling, or distributing goods or services at wholesale, retail, by lease, agreement, or otherwise. For distributors, while there may not be a specific state statute governing all distributor relationships, the terms of the contract with the manufacturer will be crucial in defining the scope of their rights and obligations, including the exclusive distribution rights within a certain geographic area. It is important for dealers and distributors to have their contracts reviewed by an attorney to ensure compliance with applicable laws and to fully understand their rights and responsibilities under these agreements.