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

Answers:

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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.