1. The appeal is dismissed.

2. The costs of appeal shall be borne by the Plaintiff.

Purport of claim and appeal

judgment of the first instance.

1. The basic facts of the claim: (a) on January 3, 2012, the Plaintiff entered into a branch contract with the Defendant, a manufacturer of food waste disposal equipment, to exclusively sell the food waste disposal equipment in the Gyeonggi-do area (in that the Plaintiff has an exclusive sales right in a broad area; and (b) the Plaintiff appears to have sold the goods supplied from the Defendant on its own account and responsibility; hereinafter referred to as “instant contract”); (i) on the condition that the Defendant is granted a branch business right to the Plaintiff, the Plaintiff deposited KRW 20 million in advance with the Defendant (Article 3(1)); (b) on the condition that the Defendant is granted a branch business right (Article 3(1)); and even on the termination of the original relationship, the Plaintiff may not claim against the Plaintiff the pertinent business right, such as the sales right, unless the Plaintiff had another person succeed to the branch business right (Article 3(2)); and (iii) the Plaintiff cannot claim against the Defendant at the time of the termination of the instant contract.

(2) On April 1, 2016, the Plaintiff sold the food waste treatment equipment manufactured by the Defendant to Nonparty C. On the part of the Plaintiff: (a) on the part of April 1, 2016; (b) on the part of the Plaintiff, there was any defect in malodor generated during the operation of the product; and (c) on the part of May 2016, C had cancelled the sales contract with the Plaintiff; (b) on the part of the Plaintiff, the Plaintiff notified the Defendant of the fact that “the Plaintiff would pay the Defendant the price of the goods to be returned and the sales profit” around June 2016; and (d) on August 22, 2016, the Plaintiff did not comply with the Plaintiff’s order against the Defendant to pay KRW 4 million for sales profit (or KRW 1,122,000,000 and KRW 4 million for the foregoing goods).