To avoid or reduce potential compensation obligations when terminating a relationship with a foreign intermediary, a manufacturer should use a merchant intermediary instead of appointing a foreign agent

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Choosing a merchant intermediary instead of a foreign agent can help manufacturers avoid or reduce potential compensation obligations when terminating a relationship. This is because merchant intermediaries typically function as independent buyers and sellers, whereas foreign agents often have agency relationships with manufacturers and may have legal rights to compensation upon termination.

To Avoid or Reduce Potential Compensation Obligations When Terminating a Relationship