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Why do Authorized Representative agreements include a penalty clause in case of a contractual violation by the manufacturer?

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Why do Authorized Representative agreements include a penalty clause in case of a contractual violation by the manufacturer?

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• The Authorized Representative is subject to EU law. The device manufacturer however resides outside the EU Legal Jurisdiction and may decide not to cooperate with the EU authorities. To minimize the Authorized Representative’s exposure of being on the receiving end of a manufacturer’s liabilities, the penalty clauses provide recourse. 15) If we cancel our Authorized Representative agreement do all duties stop immediately? • No, the Authorized Representative’s name remains on devices already sold and still in use, resulting in the continuation of some obligations even after cancellation of the agreement. BACK copyright=new Date(); update=copyright.getYear(); document.write(“Copyright 2001-“+ update + ” QNET LLC All rights Reserved.”); WWW.CE-Mark.

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