Supply Contract Terms for New Customer Competitor

In Simple Terms

When a Power Unit manufacturer supplies a new team, they must offer similar contract terms to what existing customer teams receive, except for the price itself. The manufacturer can use any terms that at least one other customer team has agreed to, or if no other teams exist, they have complete freedom in setting payment conditions.

• New customer teams must receive substantially identical contract terms as existing customer teams (excluding price)
• PU manufacturers can impose any terms that at least one existing customer competitor has already accepted
• If no other existing customer competitors exist, the PU manufacturer has sole discretion over payment terms
• Price is the only contractual element specifically excluded from the 'substantially same terms' requirement