Sorry, but I went a little too far in my first Answer, trying to explain what "doing business" in Canada might mean technically. That is a more complicated question than your's, which was: Is it legal under Canadian law for a US corporation to hold blanket distribution rights in Canada...?
My Answer was: Yes it is. The contract is between the U.S.Corp. and the manufacturer, wherever it is located (China?). The distribution rights can be world wide.
I stand by that Answer. IT IS LEGAL. The problem with questions like yours asking, botXXXXX XXXXXne, "is such and such legal", without much in the way of specific details, the Answer is seldom what the person wishes to hear. You obviously have a problem with some U.S. company distributing something in Canada. This subject is covered by numerous trade treaties in thousands of pages of laws and agreements between nations. If you wish to know more about payment of GST or jurisdiction
of Canadian Courts over U.S. Corporations
, doing business in CA please post a new question with additional facts along those line.
I hope that this is satisfactory clarification of this Answer, and it will permit a positive rating, even though it might leave you in doubt about particular aspects of your problem. And again, thanks for choosing Just Answer for your questions.