Preprint Article Version 1 This version is not peer-reviewed

Reflection on Exclusivity and Termination of Commercial Agency in Jordan: The Intertwining of Domestic Regulation and International Trade Law

Version 1 : Received: 9 December 2018 / Approved: 11 December 2018 / Online: 11 December 2018 (08:59:38 CET)

How to cite: Malkawi, B.H. Reflection on Exclusivity and Termination of Commercial Agency in Jordan: The Intertwining of Domestic Regulation and International Trade Law. Preprints 2018, 2018120115 (doi: 10.20944/preprints201812.0115.v1). Malkawi, B.H. Reflection on Exclusivity and Termination of Commercial Agency in Jordan: The Intertwining of Domestic Regulation and International Trade Law. Preprints 2018, 2018120115 (doi: 10.20944/preprints201812.0115.v1).

Abstract

The Jordanian Law of Commercial Agents and Intermediaries No. 28 of 2001 and the Emirati Commercial Agency Law No. 2 of 2010 cover all forms of sale contracts through intermediaries. These Laws provide express restrictions and protective provisions on the conduct by local agents of internal commercial agency activities. However, these statutory protections are granted only to registered agencies conducted by national agents.The Jordanian legislator does not regulate the issue of agency exclusivity, which can constitute a restraint of trade and leads to a state of market monopolization. Courts in Jordan have exclusive jurisdiction in settling disputes arising out of agency agreements. However, this exclusive jurisdiction does not cover unregistered commercial agencies which are treated as enforceable commercial contracts under the general provisions prescribed in the Commercial Code.Under the Jordanian Law the principal cannot terminate the agency agreement at any time, but he can dismiss its renewal upon the expiry of its date without justified grounds. Certain statutory protections provided by the Jordanian laws raise barriers to entry to their national markets. This statutory policy violates the specific commitments made by Jordan with respect to market access and national treatment established by the GATS.

Subject Areas

Commercial agency, Exclusivity, Agency termination, Agency disputes, Agency committee, Jordan, GATS, Competitive markets, Monopolization

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