A product supply agreement is an agreement in which a supplier sells products to a business, and specifies the terms for the transactions, including the price, timing, quantities, delivery, shipping, payment terms, exclusivity, return of defective or nonconforming goods, and return of unsold goods. A supplier may be a distributor, wholesaler, dealer, or merchant.
In New Jersey, a product supply agreement is a legally binding contract between a supplier and a business that outlines the terms and conditions of the sale and purchase of products. The agreement typically includes details on pricing, delivery schedules, quantity of goods, shipping logistics, payment terms, and conditions for exclusivity. It also addresses the handling of defective or nonconforming goods, including returns and replacements, as well as the return of unsold goods. These agreements are governed by New Jersey's version of the Uniform Commercial Code (UCC), particularly Article 2, which covers the sale of goods. Additionally, such agreements must comply with federal laws and regulations that may apply, such as antitrust laws and consumer protection statutes. It is advisable for businesses to consult with an attorney to ensure that their product supply agreements are in compliance with all relevant laws and to safeguard their interests in these transactions.