Wine Law

8 The contract may provide for promotional obligations (e.g. certain advertising investments, participation in trade fairs, etc.) and the attainment of minimum turnover, but, it should be borne in mind, that where distribution is highly concentrated (USA, Russia) it is the importers who have greater contractual force and dictate the conditions. It is, therefore, likely that the seller himself must support the promotion of his wine also through the activity of agents, also to be contracted. The regulation of this contract in the European Union is found in Directive 86/653/EEC, transposed, in subsequent years, by the Member States, which now have national laws on the subject which, however, differ, at least in part, between them, both because of the alternatives allowed by the Directive and for the aspects not regulated by it. Also outside the EU, various laws regulate the agency relationship. It is important to introduce contractual clauses that provide for the importer/distributor's commitment to take care of all the obligations provided for in his country for the importation of wine, bearing the related expenses, as well as his commitment to inform the producer about the local rules applicable to the products as well as in general on the local market, including the activities of competitors and possible violations of the producer's brand. Generally there are no objections from large importers to the acceptance of these clauses as the activities they provide for are part of their routine work. Finally, it is important to establish the duration of the contract, considering that if it is a fixed term, the contract can be terminated early only for serious breaches, unless otherwise provided for in the contractual clauses, while in the case of indefinite duration the contract can be terminated even unjustifiably, at any time, unless there is an obligation to comply with an agreed notice or, in the absence thereof, a reasonable notice. For the resolution of disputes arising from supplies, as well as from the distribution relationship, it will then be appropriate to provide in the contract a clause of choice of applicable law and of the competent court (or arbitration), as seen in the previous paragraph. 6. Legal Framework within Europe It is clear that in the case of domestic sales the reference legislation will be the Civil Code, with the peculiarities of the various Member States.