Legal Definitions - dual distributorship

Definition: Dual distributorship is a business structure where one party operates a branch or dealership on the same market level as one or more of its customers. It is a type of distributorship where the distributor also competes with its own customers.

Example: A company that sells cars may have its own dealership in a particular area, but it may also have other dealerships in the same area that sell its cars. This means that the company is not only selling cars to customers but also competing with its own dealerships. This is an example of dual distributorship.

Explanation: In this example, the car company is the distributor, and the dealerships are its customers. The company is selling cars to customers directly through its own dealership, but it is also selling cars to customers through its other dealerships. This creates a situation where the company is both a supplier and a competitor to its own customers, which is the essence of dual distributorship.