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A car dealership or vehicle local distribution is a business that sells new Cars and/or Used Car s at the Retail level, based on a dealership contract with an Automaker or its sales Subsidiary . It employs Automobile Salespeople to do the selling. It may also provide maintenance services for cars, thus employing Automobile Mechanic s, stock and sell spare Automobile Parts , and process Warranty claims.


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This field is ruled by Commission Regulation ( EC ) NO 1400/2002 of 31 July 20021, on the application of article 81(3) of the Treaty to categories of vertical agreements and concerted practices in the Motor Vehicle Sector .

In the Member States of the European Union, motor vehicle and s also operate networks of authorised Repairer s. Such a distribution or repair network consists of a bundle of similar agreements between the manufacturer and the individual distributors or repairers. For the purposes of EU competition law, these agreements are referred to as Vertical Agreement s, as the manufacturer and distributor or repairer each operate at different levels of the production or distribution chain.

Whether a vertical agreement actually restricts competition and whether in that case the benefits the anti- Competitive effects will often depend on the market structure.

The new Regulation 1400/2002, which entered into force on 1 October 2002, introduces a number of substantial changes as regards the exemption of distribution agreements for new motor vehicles and spare parts. It also introduces major changes as regards the exemption of agreements for the provision of repair and maintenance services by authorised and independent repairers and other independent operators, such as Onroad Assistance Operator s, distributors of spare parts and providers of training for repairers.


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