Dealer Violation & Sanctions Matrix

Here’s a comprehensive Dealer Violation & Sanctions Matrix for Crown Organic Biofertilizers Inc. (COBI).
It is designed to standardize enforcement, protect brand integrity, and incentivize compliance across all dealers and distributors. This is ready to be included in your Dealer Handbook or Territory Agreement.


🛡️ COBI DEALER VIOLATION & SANCTIONS MATRIX

Violation CategorySpecific ExamplesFirst OffenseSecond OffenseThird / Severe Offense
Pricing & SRP ViolationUndercutting Suggested Retail Price (SRP)Written warning; corrective action planTemporary suspension of supply (30 days)Loss of exclusivity; termination of agreement
Territory EncroachmentSelling in another dealer’s exclusive territory without approvalWritten warning; corrective planSuspension of supply / territory reductionTermination of agreement; permanent loss of exclusivity
Brand Misuse / MisrepresentationAltered labels, unauthorized marketing claims, claiming COBI affiliationWritten warning; re-trainingSuspension of marketing support; corrective measuresTermination; legal action if fraudulent
Product Handling & Storage ViolationSelling expired, damaged, or adulterated productsWritten warning; corrective actionTemporary supply suspensionTermination; indemnification for damages
Failure to Meet Minimum Purchase CommitmentNot achieving agreed quarterly/monthly volumesWritten warning; 30-day corrective periodDowngrade to non-exclusive dealerLoss of exclusivity; possible termination
Non-Compliance with Dealer Code of ConductMisleading farmers, unethical sales, non-reportingWritten warning; re-trainingSuspension of incentives or field supportTermination; legal action if warranted
Regulatory / Legal ViolationSelling unregistered products, unsafe handling, violation of lawsWritten warning; compliance planSuspension of supplyImmediate termination; report to authorities
Demo / Field Activity MisreportingFabricated demo results or photosWritten warning; corrective planSuspension of demo supportTermination of exclusivity; loss of field support privileges
Conflict of InterestRepresenting competing brands without disclosureWritten warning; disclosure requiredDowngrade of status; corrective measuresTermination of dealer status; loss of territory
Repeated Minor ViolationsMultiple minor infractions in 12 monthsWritten noticeCombined corrective measuresEscalation to termination if persistent

Notes & Guidelines

  1. Escalation Process:
    • All violations are documented in writing.
    • Dealers have 30 days to correct minor offenses before escalation.
    • Severe violations (fraud, product adulteration, legal breaches) may result in immediate termination.
  2. Performance & Compliance Review:
    • COBI conducts quarterly audits of dealers’ performance, compliance, and reporting.
    • Matrix applies to all authorized dealers and extension agents.
  3. Appeal & Clarification:
    • Dealers may submit written appeals or clarification requests to COBI management within 10 business daysof receiving a notice.
  4. Incentive Adjustments:
    • Sanctions may affect volume rebates, demo support, marketing materials, and preferential pricing.
  5. Core Principle:
    “Compliance protects your territory, your brand, and your revenue.”

If you want, I can now integrate this with the full Dealer Handbook into a polished, ready-to-distribute PDF that includes:

  • Distributor Handbook
  • Territory Exclusivity Policy
  • Minimum Purchase Commitment
  • Dealer Code of Conduct
  • Violation & Sanctions Matrix
  • Product Comparison Table & Infographics

This would make it a complete distributor manual ready for onboarding and training.

Do you want me to create that consolidated PDF next?