FOCUS 8. Role play.

1. Hold negotiations on the Agency clauses. Specify the Agent’s designation; its representation on letterheads, advertising; office signs; publicizing the Company’s services.

2. Hold negotiations between the Agent and the Principal on suspension of the Agency.

3. A general import agent goods wishes to handle a Russian firm’s plastic ware. He calls on a potential Principal and makes him an offer of services. The Agent has an excellent sales organization and a thorough knowledge of his market. He thinks that the Principal’s product would sell very well. He is prepared to do business with the Principal either on a consignment basis or by placing firm orders. He is interested in handling a sole agency for the Principal which, he thinks would be to their mutual advantage. The principal asks the Agent to give him some idea of the terms on which he would be willing to operate as the Principal’s agent and approximately what amount of stock he would wish to hold. The Agent provides the Principal with the information he asked for. The Principal (choose either variant):

Ø accepts the offer on condition that the Agent handles no competing goods from Russian manufacturers;

Ø turns the offer down since he never uses sole agencies anywhere in the world as he has found sole agencies tend to be rather restrictive both for the Principal and his customers.