ENFORCEMENT DECREE OF THE FAIR AGENCY TRANSACTIONS ACT

Article 1(Purpose) #

The purpose of this Decree is to prescribe matters mandated by the Fair Agency Transactions Act and those necessary to enforce said Act.

Article 2(Matters to Be Provided for in Agency Transaction Contracts) #

"Matters prescribed by Presidential Decree" in Article 5 (1) 8 of the Fair Agency Transactions Act (hereinafter referred to as the "Act") means the following:

1. In cases of consignment sale transactions, matters concerning the scope of the business entrusted to the agency by the supplier;

2. In cases of consignment sales transactions, matters concerning the price to be paid by the supplier to the agency, irrespective of its name, such as commission.

Article 3(Types of or Criteria for Conduct of Compelling Purchases) #

Conduct prohibited under Article 6 (1) of the Act shall be any of the following:

1. Compelling an agency to purchase any specific goods or services by compelling it to place an order or by creating a situation in which there is no choice but to place an order;

2. Supplying goods or services that an agency has no intention to purchase, by unilaterally modifying the details of an order placed by the agency;

3. Any other conduct determined and publicly notified by the Fair Trade Commission as conduct compelling to purchase goods or services against an agency’s intention.

Article 4(Types of or Criteria for Conduct of Compelling Provision of Economic Benefits) #

Conduct prohibited under Article 7 (1) of the Act shall be any of the following:

1. Compelling an agency to bear the cost, provide human resource, etc. for a sales promotional event arranged in accordance with the needs of the supplier;