AboutDavideAndrew Papa Expertise All matters pertaining to assisting Private import export INTERMEDIARIES, AGENTS and BROKERS Regarding International trade Laws and procedures,Letters of credits, as per UCP600,Presentation, Commissions,International Rules of agency, and Incoterms 2000. All matters pertaining to shipping documents relating to the Import and export of products from one country to another.All matter for buyers and sellers of commodity products relating to the import and export industry.FTN with the introduction of UCP600 will release the publication "The world is yours" made specifically for Intermediaries.Our advice website is www.ftnx.9f.com
Experience FTN exporting founder Davide Papa has been trading for over 20 years- and has dealt with a huge variety of corporate entities including Gold and crude oil suppliers.FTN appeared in a major controversial Newspaper editorial in 1994- FTN exporting publication " The world is yours" is now in its third year of online publication.
Expert: DavideAndrew Papa Date: 7/5/2008 Subject: exclusive vs. sole agency
Question Dear Papa
I very much enjoy reading your answers, esp. those related to the import/export business.
Please would you tell me the difference,no matter how subtle, between an exclusive agency and a sole agency?
I know there is indeed difference between these terms used in the real estate industry, but I am not sure about thier use in the import/export business.
I shall appreciate whatever assistance you would give me.
Best Regards,
James
Answer
Dear James-
Too complex of a question:- Let me simply define it-
ie- A mandate ship (Very difficult to get- only very experienced qualified long term traders would have a chance to obtain- ) conferred upon a sole entity in lets say USA to sell lets say ie:.Toshiba products directly from the suppliers defines the position of a Sole agency for the whole of USA - if such were given-
Thus by defualt no other agency can be formed to repesent Toshiba products in USA unless an exclusive agency is allowed to apply in I.e; Territories in the USA, as obtained under authority from the person holding sole agency of the Whole of USA or sole agency even to one territory- Ie. State of Nevada in were sub agencies may also previal under the directive of the 'sole " agent-
I.e: LooK at a differing possible scenario: Trade mark: So USA "Avis rent a car" opens a office is Australia- Any other person wanting to "rent cars' may indeed need to meet statutory requirement of the state- but not just that; in certain circumstance -Such a person will also need permission to operate "Rent -a- car' in the same state especially if the term " Avis rent a car" is a trade marked application -then just using the term "rent a car" could force an independent competitor to pay fee's to "Avis" to use such a term ...etc..etc..
The Person holding sole agency calls the shots to the people who represent exclusive agency territory, and could ask for affiliation fee's , Agency fee's, Franchises fee's and the likes- tehy may be be forced to by goods from the sole Agency -ie.7/11 outlets- McDonalds..etc..etc
Thus the chain of command- all territorial Agents holding exclusive territory agency as representatives of Toshiba, would apply to have all orders vetted and accepted by the Sole agency- the sole agency then does all its business with Toshiba direct-Toshiba cannot override the person holding Sole agency, once such is conferred-
Real Estate - ie: Toms Realtor New York sets up shop - He is Sole Agency of Tom's Realtor , the Corporate "entity" who may employ its own agents to cover exclusive territories within his own state or even other states-etc..etc..
