Selective Distribution System Clause Samples

A Selective Distribution System clause defines the framework under which a supplier restricts the sale of its products to a network of specifically chosen distributors who meet certain criteria. In practice, this means that only authorized distributors who comply with set standards—such as quality controls, technical expertise, or brand presentation—are permitted to sell the products, while sales to unauthorized resellers or through unauthorized channels are prohibited. The core function of this clause is to protect the brand’s image and ensure consistent product quality by controlling the distribution chain, thereby preventing dilution of brand value and unauthorized sales.