Distribution
Great care should be taken in selecting an importing distributor in Europe because in many EU countries, statutory provisions or traditionally developed doctrines exist that restrict the freedom of contract in the distributorship area. One of such restrictions is the rule that a distributorship agreement may not be terminated or renewed, even in accordance with its terms, without payment of special compensation to the distributor unless the distributor has been found to have committed certain statutorily defined breaches. EU law is clear in that it forbids absolute territorial limits and resale price maintenance provision in distribution contracts.