In certain economic sectors financial issues can be considerable

Adopted barely seven months after the Chatel Law of January 3, 2008, the law of modernization of economy (LME) on August 4, 2008 marks a new stage in the reform of commercial relations with central objective the improvement of the purchasing power. Entered into force on 6 August 2008, for its part relating to the trade negotiations, the LME wants to relax the negotiation of the conditions of sale and prices between suppliers and distributors. On the recommendations of the report Hagelsteen, the LME repeals the prohibition "per are" discriminatory practices. Therefore, should more be condemned, as such, the granting or discriminatory, i.e. different conditions obtaining between two clients in a comparable situation, and not justified by actual counterparties. The LME also removes the requirement to justify the special conditions of sale by "the specificity of services rendered". Suppliers and distributors should be accorded greater latitude in trade negotiations. However, with caution, because abusive discriminatory practices remain punishable an abuse of dominant position or anti-competitive agreements or even if they realized other abusive practices covered by article l. 442 - 6 of the Code of commerce.

General formulation

To prevent certain abuses, the LME prohibited practices to submit or attempt to submit a business partner of creating a significant imbalance in the rights and obligations of the parties. Is also prohibited any clause allowing to receive automatically the more favourable conditions granted by a trading partner to competing undertakings. Finally, the fine civil by the author of an abusive practice referred to in article l. 442 - 6 can now be extended to three times the amount of sums unduly paid by the victim.

In terms of the formalization of the negotiations, LME provides accommodation to the consolidated convention established by the law Chatel, to formalize the outcome of the commercial negotiation between the supplier and the Distributor or service provider. This agreement entered into before March 1 or within two months of the starting point of the period of marketing products or services subject to a specific marketing cycle should specify the obligations which the parties are committed to fix the price at the end of the trade negotiations. The LME fixed the content of this agreement and including replaces the reference to the separate services by a general formulation covering the "other obligations designed to facilitate the commercial relationship between the supplier and the Distributor or service provider". Whereas, until now, these services were charged by distributors to dealers, Parliament intends to be back on the invoice for the sale of the vendor products. This upwelling on invoice, which does not alter the calculation of the threshold for resale at a loss introduced by Chatel Law, raises serious problems both in terms of the invoicing that tax rules. Category of services previously referred to as trade cooperation is with respect to it maintained and expanded services for the purpose of resale professionals.

Legal ceiling of payment

The LME also addresses the issue of the payment period. The flagship measure is the introduction to contracts entered into from 1 January 2009 and the appeals of orders subsequent to that date in the case of blanket orders, of a legal ceiling of payment of general scope. Thus, apart from the previously regulated sectors, parties will not agree to a delay of payment exceeding 45 days end of month or 60 calendar from the date of issuance of the invoice. Temporary sectoral derogations will be possible by way of interprofessional agreements subject to strict conditions. Those who submit a partner in terms of settlement do not comply with this legal limit can see civil liability and be a civil fine. The application of this text already raises questions when the supplier or the buyer is located abroad. In certain economic sectors, financial issues can be considerable.