My supplier recently sent me a letter saying they will no longer sell product to me because they are working exclusively with my competitor.

They will no longer sell product to two counties in Southern California. Is it legal for them to refuse to sell? My competitor is flooding the market to monopolize the area. This effects our business as well as 5 others in the area. What can I do?

Asked on March 1, 2016 under Business Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

This is perfectly legal: no law requires a given distributor, supplier, etc. to sell to everyone, and a business is allowed to decide who to do business with. So if the competitor is, for example, paying them more, giving them a piece of any profit, and/or otherwise making it worth their while to only do business with the competitor, this legal.

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