Question
UK Electronics is a London-based joint stock company that was created in 1983. It is the patent holder and the manufacturer of the very popular
UK Electronics is a London-based joint stock company that was created in 1983. It is the patent holder and the manufacturer of the very popular "Sonic Boom" headphones, with worldwide sales in excess of 40 million in 2015. It distributes its products in over 100 countries via a network of independent resellers.
In Morocco, UK Electronics has entered into an exclusive distribution agreement with RadioHead SARL, which has stores in every major city. The sale of "SonicBoom" headphones represents 20% of RadioHead's annual sales of MAD 55 million.
Last week, the managing director of the company you work for as in-house counsel, MusicMania, a small family-owned music store, asked you to contact UK Electronics to look into the possibility of selling "SonicBoom" headphones as a way to boost sales.
The relevant portions of UK Electronics's response read:
"Although we welcome and appreciate your interest in reselling the SonicBoom headphones in your store in Morocco, we must inform you that we have an exclusive distribution agreement in place with RadioHead SARL and that, as such, we must decline your offer."
"Furthermore, and in any event, please note that our distribution agreements require that you order annually at least MAD 5 million in other UK Electronics products in order to be able to resell SonicBoom headphones."
Based on this answer, advise your employer as to its rights and recourses, if any, under the Moroccan Free Pricing and Competition Act of 2000 (Law n 06-99). Consider all relevant provisions.
- Part 1)
- In this section of the report, you should outline the key issues at stake
- Part 2)
- In this section, you should identify and explain the various recourses available
- Part 3)
- In this section, you should include all your legal references and discuss how they are relevant to this particular case
- Part 4)
In this section, you should recommend a course of action and indicate the likely outcome
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