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[Fair Trade] Successful Defense in Civil Damages Lawsuit Related to Violation of the Large-Scale Distribution Business Act

2020.03.09

In February 2020, EJE LAW successfully represented a large-scale distributor before the Supreme Court of Korea, securing a final victory in a damages lawsuit filed by a supplier for alleged violations of the Large-Scale Distribution Business Act. The case centered on a claim that the distributor had failed to provide a written agreement while utilizing the supplier’s sales personnel, prompting the supplier to seek compensation equivalent to labor costs. EJE LAW demonstrated through accounting analysis and supporting evidence that the supplier had not suffered any actual damages, ultimately leading to a favorable ruling for the distributor.


In particular, EJE LAW argued that a violation of the formal requirement to provide written documentation under the Large-Scale Distribution Business Act does not automatically give rise to liability for damages if the supplier has not incurred any actual loss. The High Court accepted this argument, stating that: "Unless the defendant's act of deploying sales staff received from the plaintiff can be evaluated as an abuse of superior bargaining position, the mere procedural defect in failing to provide written documentation cannot, in itself, be deemed a tortious act." This ruling established an important precedent for future damages claims involving violations of the Large-Scale Distribution Business Act, particularly by emphasizing the requirement of actual damage and improper conduct beyond mere formal non-compliance.

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