Cha & Kwon Law Offices advised a domestic distributor on legal risks arising from the expiration of a cross-border distribution agreement with a global brand. The engagement focused on post-termination inventory liquidation and channel controls, including sell-off periods, pricing and territorial restrictions, and trademark use limitations.

The firm reviewed key contractual provisions to assess risks associated with delayed inventory disposal, bulk sales to professional dealers, and repurchase or resale structures. Potential dispute scenarios—such as injunctions, damages claims, and sales suspension—were analyzed to provide practical response options.

Through this advisory, the client was able to implement a commercially reasonable exit strategy while minimizing post-termination contractual and trademark-related risks.

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