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What is a most favored supplier clause?

Most-Favored Nations (MFN) clauses (also known as antidiscrimination clauses or most-favored customer clauses) are common in business today. These provisions require that the supplier will treat a particular customer no worse than all other customers (and sometimes even better).

Are MFN clauses legal?

Importantly, to date, no U.S. court has found that an MFN provision violates antitrust law. But courts have approved consent decrees by enforcement agencies that enjoined the use of MFNs.

What is GSA most favored customer?

GSA has a clause called the Most Favored Customer (MFC) clause. It requires the contractor to offer the government at least the best price it offered to a previous customer. GSA uses this clause for its schedules.

What is MFN in safe agreement?

MFN Clause: In a most favored nation (MFN) clause, if subsequent convertible securities are issued to future investors at better terms (e.g., a lower valuation cap), the better terms will automatically apply to the investors SAFE. This clause falls away on conversion of the SAFE into company stock.

What is the meaning of the Most Favored Nation MFN clause provide an example to explain your understanding about the MFN clause?

In international trade, MFN treatment is synonymous with non-discriminatory trade policy. For example, if a country belonging to the WTO reduces or eliminates a tariff on a particular product for one trading partner, the treatys MFN clause obligates it to extend the same treatment to all members of the organization.

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