THE EEC TREATY , IN ORDER TO ASCERTAIN WHETHER A MANUFACTURER MAY RESTRICT A GUARANTEE ON HIS PRODUCTS TO THE CUSTOMERS OF AUTHORIZED DEALERS ONLY .
2 IT APPEARS FROM THE JUDGMENT OF THE NATIONAL COURT THAT ETA FABRIQUES D ' EBAUCHES SA ( HEREINAFTER REFERRED TO AS ' ETA ' ), A LIMITED COMPANY INCORPORATED UNDER SWISS LAW , MASS-PRODUCES INEXPENSIVE ' SWATCH ' QUARTZ WATCHES AND MARKETS THEM IN THE COMMON MARKET THROUGH A NETWORK OF EXCLUSIVE DISTRIBUTORS . ETA ASSIGNED THE EXCLUSIVE DISTRIBUTION OF ' SWATCH ' WATCHES IN THE TERRITORY OF BELGIUM AND THE GRAND DUCHY OF LUXEMBOURG TO SEDOS SA , OF WHICH GEDEVE DIFFUSION SA IS THE SUCCESSOR IN TITLE . UNDER CLAUSE 2 OF THE DISTRIBUTION AGREEMENT ETA UNDERTAKES NOT TO OFFER OR SELL ITS PRODUCTS IN THE TERRITORY ALLOTTED , EXCEPT TO THE DEALER , AND TO PASS ON TO HIM ANY ORDER RELATING TO THAT TERRITORY . FOR HIS PART , THE DEALER UNDERTAKES NOT TO BUY THE PRODUCTS OTHERWISE THAN FROM ETA , NOT TO SELL OR DISTRIBUTE THEM , EITHER DIRECTLY OR INDIRECTLY , OUTSIDE THE TERRITORY ALLOTTED AND TO PASS ON TO ETA DIRECT ANY ORDER RELATING TO THE DISTRIBUTION OF THE PRODUCTS OUTSIDE THAT TERRITORY .
3 CLAUSE 7 OF THE AGREEMENT STIPULATES THAT THE PRODUCTS SOLD BY ETA TO THE DEALER ARE COVERED BY A GUARANTEE AGAINST TECHNICAL DEFECTS FOR A PERIOD OF 12 MONTHS AFTER SALE TO THE CONSUMER , SUBJECT TO A MAXIMUM OF 18 MONTHS FOLLOWING DELIVERY TO THE DEALER . THE LATTER IS REQUIRED TO KEEP HIS STOCK UP TO A CERTAIN LEVEL , WHICH ETA IS ENTITLED TO VERIFY , AND HE MUST REGULARLY PASS ON TO ETA FULL INFORMATION CONCERNING HIS TURNOVER , STOCK LEVELS AND SALES . IT APPEARS FROM THE DOCUMENTS BEFORE THE COURT THAT THE PACKAGING OF EVERY WATCH CONTAINS A GUARANTEE CERTIFICATE WHICH STATES : ' YOUR ' ' SWATCH ' ' WATCH IS GUARANTEED BY ETA SA FOR 12 MONTHS FROM THE DATE OF PURCHASE AGAINST ALL DEFECTS IN MATERIAL OR WORKMANSHIP . THIS GUARANTEE DOES NOT COVER THE BATTERY , THE WATCH GLASS , OR WEAR AND TEAR TO THE CASE , STRAP OR BUCKLE ' . SOME GUARANTEE CERTIFICATES STIPULATE THAT THE DISPATCH COUPON SUPPLIED MUST BE SENT TO THE ' SWATCH ' REPAIR SERVICE IN SWITZERLAND , WHEREAS OTHERS REQUIRE IT TO BE SENT TO THE EXCLUSIVE DISTRIBUTOR FOR BELGIUM . IT ALSO APPEARS FROM THE DOCUMENTS BEFORE THE COURT THAT A DEFECTIVE WATCH IS NORMALLY REPLACED , SINCE REPAIRS ARE IMPOSSIBLE ON ACCOUNT OF THE METHOD OF MANUFACTURE .
4 THE DEFENDANTS IN THE MAIN PROCEEDINGS SELL ' SWATCH ' WATCHES WHICH THEY OBTAIN BY WAY OF PARALLEL IMPORTS , TOGETHER WITH THE GUARANTEE CERTIFICATE WHICH REFERS TO THE ' SWATCH ' REPAIR SERVICE IN SWITZERLAND . THE PLAINTIFF APPLIED TO THE TRIBUNAL DE COMMERCE , BRUSSELS , FOR AN INTERLOCUTORY INJUNCTION RESTRAINING THE DEFENDANTS FROM SELLING ' SWATCH ' WATCHES