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 Wyoming, as in other states, dealers and distributors operate under agreements that define their relationship with manufacturers. Dealers purchase products to resell them, either in physical retail locations or online. They act as intermediaries between distributors or manufacturers and the customers. Dealers can carry products from multiple manufacturers and may be subject to certain restrictions based on their dealer agreements. Distributors, on the other hand, are granted the exclusive right to distribute a manufacturer's products within a specified geographic area. These relationships are typically governed by written contracts, which can include terms like minimum advertised pricing (MAP) and other conditions that dictate how the products can be marketed and sold. These agreements are crucial as they ensure compliance with the manufacturer's policies and protect the interests of all parties involved. While specific state statutes in Wyoming may not extensively regulate these agreements, they are subject to general contract law principles, which require that the agreements be entered into voluntarily, be supported by consideration, and not involve any illegal activities. Additionally, federal antitrust laws, such as the Sherman Act and the Clayton Act, may apply to ensure that these agreements do not result in unlawful restraint of trade or monopolistic practices.