FAIR AGENCY TRANSACTIONS ACT

CHAPTER I GENERAL PROVISIONS

Article 1(Purpose) #

The purpose of this Act is to contribute to the sound growth of the national economy by establishing a fair trading order for agency transactions and by ensuring the mutually complementary and balanced growth of suppliers and agencies on equal grounds.

Article 2(Definitions) #

The terms used in this Act are defined as follows:

1. The term "agency transactions" means transactions conducted between a supplier and an agency for the resale or consignment sale of goods or services which are provided repeatedly by entering into a contract with a fixed period;

2. The term "supplier" means a business entity that supplies produced or purchased goods or services to agencies;

3. The term "agency" means a business entity that is supplied with goods or services by a supplier and resells or sells them on consignment to many and unspecified retailers or consumers;

4. The term "return" means all acts by which an agency returns goods supplied by a supplier to the supplier, practically exchanges such goods with other goods of the supplier, etc., irrespective of formalities;

5. The term "sales incentive" means an economic benefit a supplier provides to an agency to promote sale of goods, irrespective of the name.

Article 3(Exemption) #

(1) This Act shall not apply in any of the following cases:

1. Where a supplier falls under a small and medium entrepreneur (referring to a person falling under Article 2 (1) or (3) of the Framework Act on Small and Medium Enterprises, and including small and medium enterprise cooperatives under Article 3 (1) of the Small and Medium Enterprise Cooperatives Act; hereinafter the same shall apply);

2. Where an agency is not a small and medium entrepreneur;

3. Where a supplier is not acknowledged as holding a superior position to an agency. In such cases, whether a supplier holds a superior position to an agency in transactions shall be determined after the following matters are taken into a comprehensive consideration:

FAIR AGENCY TRANSACTIONS ACT

Article 1(Purpose) #

Article 2(Definitions) #

Article 3(Exemption) #

Article 4(Relationship to other Statutes) #

Article 5(Duty to Prepare Agency Transaction Contract) #

Article 5-2(Standard Agency Contracts) #

Article 6(Prohibition on Compelled Purchases) #

Article 7(Prohibition on Compelled Provision of Economic Benefits) #

Article 8(Prohibition on Compulsion of Meeting Sales Targets) #

Article 9(Prohibition on Imposing Disadvantages) #

Article 10(Prohibition on Interference with Management Activities) #

Article 11(Prohibition on Refusal or Evasion of Requests for Confirmation of Details of Orders Placed) #

Article 12(Prohibition on Retaliation) #

Article 12-2(Conclusion of Agreement between Supplier and Agency) #

Article 12-3(Recommendation for Transaction Standards by Type of Business) #

Article 12-4(Education on Agency Transactions) #

Article 13(Establishment of Agency Dispute Mediation Council) #

Article 14(Composition of Council) #

Article 15(Restrictions on Commissioning Members Representing Public Interest) #

Article 16(Meetings of Council) #

Article 17(Disqualification of, Challenge to, or Refrainment by, a Member) #

Article 18(Matters Subject to Mediation by Council) #

Article 19(Application for Dispute Mediation) #

Article 20(Mediation) #

Article 20-2(Relationship to Lawsuits) #

Article 21(Preparation of Mediation Protocol and Its Effect) #

Article 22(Provisions Governing Organization of Council) #

Article 23(Corrective Measures) #

Article 24(Recommendation for Correction) #

Article 24-2(Consent Resolutions) #

Article 24-3(Charges for Compelling Compliance) #

Article 25(Penalty Surcharges) #

Article 26(Cooperation of Heads of Relevant Administrative Agencies) #

Article 26-2(Payment of Monetary Awards) #

Article 27(Mutatis Mutandis Application of the Monopoly Regulation and Fair Trade Act) #

Article 27-2(Written Fact-Finding Investigations) #

Article 28(Delegation and Entrustment of Authority) #

Article 29(Reporting) #

Article 30(Penalty Provisions) #

Article 31(Joint Penalty Provisions) #

Article 32(Administrative Fines) #

Article 33(Criminal Charge) #

Article 34(Liability for Loss) #