What type of relationship must exist for a distributor to be considered as an authorized distributor of record with a manufacturer?

For a distributor to be considered an authorized distributor of record by a manufacturer, there must be a written agreement that is currently in effect. This written agreement establishes the formal parameters of the relationship, detailing the rights and responsibilities of both the manufacturer and the distributor. It provides necessary legal protection and clarity regarding issues such as pricing, territory, product specifications, and adherence to regulatory requirements.

Without a written agreement, there would be ambiguity regarding the terms of the distributor's authority, which could lead to potential disputes or misunderstandings. Options that suggest informal or verbal agreements do not provide the legal framework necessary to confirm an authorized relationship, nor do they offer the stability and accountability that a written agreement ensures. A temporary agreement for each shipment also falls short, as it does not establish an ongoing relationship or the credentials necessary for long-term distribution. Hence, having a written agreement in place is crucial for maintaining a professional and legally recognized partnership between the manufacturer and the distributor.