Distribution and Franchising

Puerto Rico imports most of its consumer products from the United States and other countries. To reach this market, manufacturers and suppliers frequently rely on dealers or sales representatives.

In Puerto Rico there are two public policy laws for the protection of local commerce: Act 75 of June 24, 1964 and Act 21 of December 5, 1990. Both laws are very aggressive in the protection of dealers' and sales representatives' rights, forbidding at-will terminations or impairments of relationships without "just cause," and providing for injunctive relief and steep damages.

With these considerations in mind, the Firm created a Distribution Practice Area. Through the years, our group has gained unsurpassed expertise in all areas directly or indirectly affected by these two laws.

Our Distribution and Franchising Attorneys are experienced advisors in matters related to distribution proposals, contracts and negotiations of modification or termination of relationships. Because of their expertise and their strong business sense our attorneys are frequently invited by clients to offer seminars on Act 75. Our attorneys are also called upon to advise clients on similar laws in other Caribbean and Latin American jurisdictions.

Representative Cases and Matters