QUESTION

We own a retail clothing store in Park City UT. We ordered a product to fill our shelves for this Fall in March of this year.

Asked on Aug 28th, 2012 on Business Law - California
More details to this question:
The vendor (showroom in Los Angeles) who represents various vendors sends us an email today noting they made a mistake with our order. They had promised the particular line of clothing to another party for exclusivity in the State of Utah in August 2011, one year ago. We placed these orders in good faith in March of this year, and now are too late to order replacements for the Fall due to the late date. The same staff members also did not tell us about another line we carry which was also ordered in March of this year for our Fall season through their showroom. They informed us this week that this second vendor was not going to produce the line and that they were sorry for any inconvenience. We count on our orders so we can make a living. Without knowing these details, we are going to be out some potentially significant sales. Do we have any legal recourse against the showroom/vendors for misleading us about the line they had previously offered to someone else months earlier?
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1 ANSWER

Litigation Attorney serving Greenwich, CT
Partner at Hilary B. Miller
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It is possible that you may have recourse, but it is not possible to evaluate your claims without a comprehensive review of the documents exchanged between you and the vendor. In particularly, it is necessary to ascertain whether there is an actual contract that was accepted by your vendor or rather an unaccepted order. In addition, the terms of the contract, including any overallotment terms, would need to be reviewed. If this is a meaningful issue for you in economic terms, you should consult with an attorney.
Answered on Aug 28th, 2012 at 8:18 PM

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