QUESTION

I am an online retailer with online stores on two popular internet sets. I have an anti-compete issue

Asked on May 19th, 2016 on Business Law - Michigan
More details to this question:
A Competitor has an agreement with a Distributor that I wish to do business with, that they do not sell to me. There are other merchants that the Distributor does business with in addition to the competitor who has requested my exclusion, this agreement pertains to me specifically, to prevent me from competing with my competitor. Is this legal for the Distributor to exclude me specifically while selling to others?
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1 ANSWER

Appellate Practice Attorney serving New York, NY
It may or may not be legal, depending on the particular circumstances.  It could be illegal if it violates antitrust laws (which is a very fact-sensitive issue) or if you are being discriminated against due to a reason prohibited by statute (e.g. race, nationality, religion, etc.)  However, it is not illegal per se for a distributor to refuse to sell to some outlets.  For example, it is common for a manufacturer to have a contract with a distributor that the distributor will not sell to off-price retailers, or sell to those it knows will sell the goods outside of the distributor's territory, etc.  If McDonald's wants an agreement with Pepsi to sell Pepsi beverages at McDonald's restaurants, you can be sue that Pepsi will insist that McDonald's sells no Coca Cola beverages.
Answered on May 20th, 2016 at 9:41 AM

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