Article 109

What it means when you sign

This article allows a seller of goods protected by a registered trademark to agree with the buyer that the buyer will not resell below a certain price. The court may decide that this condition need not be followed if it considers the goods to be necessary commodities. The buyer's successors are bound by the condition only if they knew of it or could have known of it.

When you are about to sign a contract for goods that carry a registered trademark, this article means that a clause setting a minimum resale price is something the law recognises, but with limits. It applies to trademark-protected goods, it can be set aside by the court for necessary commodities, and it does not automatically bind later buyers who neither knew nor could have known about it. A clause that sets a floor price for resale, or that asks the buyer to pass the condition on to later buyers, may run into these limits. Check what the contract says about resale prices and about passing goods on to others.