Can a service provider change prices on you without letting you know beforehand?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can a service provider change prices on you without letting you know beforehand?

Our business deals with a trucking company that moves around our containers in our suppliers lot, recently we noticed an increase of 40%,when we asked the reasoning for the increase they said that the supplier had given them consent to raise prices , yet we are the ones paying for the service not the supplier. Is this allowed?

Asked on July 20, 2015 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

It is not allowed unless the terms of service/contract between you specifically allows it--e.g. those terms state that any price increase shall be passed on to you, or you shall pay the trucking company's cost plus some profit margin, etc. If the contract, etc. states that, it is legal, though if you don't believe the alleged price increase, you could still ask for proof (and if the don't/won't provide it, take legal action, if necessary, to recover what you feel is an improper increase).

If there is no authority in the contract or written terms of service for them to simply pass on their own cost increases, then they may not increase your costs without prior (i.e. before the increase) notice, since you are only responsible for paying those amounts to which you agreed.


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption