On The Guarantee Money In Authorized Dealer Contract

The authorized dealer contract is the long term co-operational regulationagreement between manufacturer and authorized dealer in the process ofmarketing development, and getting more and more improved andwell-winged as marketing itself betters-up, and widely accepted and appliedby large varieties of regions and businesses, its content is endowed with moreconnotation such as broker ship, agents and charted-dealer-ship, etc. amongwhich, the guarantee money is the most powerful tool for manufacturers toregulate and bind their dealers, reflecting their say rating and ranking duringthe cooperation, and the connotation and denotation develops and evolutes to acommon rule and an indispensable term to authorized dealer contracts.However, we do not have a necessary plat for regulating authorized dealercontracts in current judicial system, and no clearly methods and rules neither,which causes some difficulties in legal practicing but not yet arouse enoughattentions in legal academia. Various factors result in the guarantee moneypolicy wildly grows and applied unmonitored, this causes benefit and/orfault/loss for both sides of the contracts, the court cases and the concerneddifficulties in recent years calls urgent regulations to this policy.In this assay, the writer has a whole analyzing on authorized dealercontracts and the guarantee money in the first part, illustrate the dissimilaritiesand commonalities among dealers guarantee money, charted dealer, agentsand brokerage margin, based on real cases. The Money serves as an interface of authorized dealer contracts. the second part begins with the main portfoliosto argues and legal cases related to authorized dealer contracts during thecooperation, then provide the causes analysis, including, bilateral benefitsprotection along with marketing development requirements, the breaching ofcontract and right, realistic moral risk, then from behavior to legalperformance, etc, and hereafter, further clarify its function and connotation inauthorized dealer contract to avoid legal risk for both sides of the contracts.The third part is an exploration of a legal way to perfect the guarantee moneypolicy in authorized dealer contract, including, how to reach a reasonabledefinition of the usage and withdrawing terms and procedures for theguarantee money to avoid legal case in advance, also how to enhance andprotect the legal positions for the authorized dealers.