QUESTION
can a manufacturer refuse to sell to a retailer?
Asked on Mar 09th, 2015 on Business Law - California
More details to this question:
A manufacturer/wholsaler opened an account with a retailer/vendor who doesn't have a store but does vending at different sites. the manufacturerwholsaler has a no competition policy and found out that while the vendor doesn't compete with any of their retail customers in her state, because she is mobile she directly competes with one of their other customers who vends at the same events. they explained this to her and told her they would no longer sell to her and she threatened to sue. the wholesaler is in California, the retailer/vendor is in west virginia
1 ANSWER
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Manufacturers are normally allowed to determine and dictate their own terms of distribution and not to sell to those outside their chain of distribution. Your detailed account probably merits an interview with an experienced business litigator to evaluate the facts. There are potential unfair competition and antitrust issues involved that don't lend themselves to a generalized analysis on a public forum.
Answered on Mar 10th, 2015 at 8:05 AM