Glossary entry

English term or phrase:

agreements on quotas

English answer:

agreements to limit volume of sales to a fixed amount over a fixed period

Added to glossary by Akhil Kumar
May 22, 2016 05:05
7 yrs ago
3 viewers *
English term

agreements on quotas

English Law/Patents Law: Contract(s) Supplier contract
Presently, I am working on a Supplier Contract. There is a provision in this document in which supplier undertakes to not participate in some activities like cartels fixing prices, agreements on quotas etc.

I couldn't understand what this "agreements on quotas" exactly mean?
Votes to reclassify question as PRO/non-PRO:

Non-PRO (2): Yvonne Gallagher, Yasutomo Kanazawa

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Discussion

Yasutomo Kanazawa May 22, 2016:
The whole sentence, please.

Responses

+5
30 mins
Selected

agreements to limit volume of sales to a fixed amount over a fixed period

This refers to activities generally prohibited by anitrust law where companies collude to manipulate the market in their favour. In this case, the parties to the agreement agree on a quota or share of sales in the market in order to keep the market under their control. This has the effect of limiting supply and maintaining high prices (favourable to the supplier but not to customers) while ensuring that each party to the agreement is guaranteed their share of sales and does not have to fight to compete.
Peer comment(s):

agree BrigitteHilgner
24 mins
Thanks, Brigitte.
agree Yasutomo Kanazawa
2 hrs
agree Yvonne Gallagher
3 hrs
agree Veronika McLaren
6 hrs
agree Tina Vonhof (X)
9 hrs
Something went wrong...
4 KudoZ points awarded for this answer. Comment: "Thanks Irene!"
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