How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask FiveStarLaw Your Own Question

FiveStarLaw
FiveStarLaw, Attorney
Category: Business Law
Satisfied Customers: 36646
Experience:  25 years of experience helping people like you.
9968427
Type Your Business Law Question Here...
FiveStarLaw is online now
A new question is answered every 9 seconds

When is it legal to drop a wholesale customer? I have been

Resolved Question:

When is it legal to drop a wholesale customer? I have been a customer of a manufacturer of specialized womens accessories for cancer for 10 years. Last week the manufacturer dropped me as a customer with no explanation. I have always paid up front with a credit card so payment is not an issue/
Submitted: 2 years ago.
Category: Business Law
Expert:  FiveStarLaw replied 2 years ago.
*Nothing herein is intended as legal advice, only intended as general information to better help yourself.*


Welcome,


It is my goal to deliver information in five-star manner.


I am a licensed attorney but I am not your attorney. The law does not allow me to provide legal advice or form an attorney-client relationship on this public forum.


If at any time the information which I provide is not clear to you or does not fully answer your question, please ask me for clarification by using the reply button.

Absent an agreement to the contrary, it is legal for a manufacturer to stop selling to a wholesale customer at any time. There is no statutory requirement that notice be given. Additionally there is no statutory requirement that a reason for discontinuing the sales be provided.

So sorry


I think this is what you wanted to know. Please let me know if I have answered your question


Thank you in advance for remembering to rate my service. If you experience difficulty using the rating buttons, please let me know as JustAnswer pays me for my time only if a positive rating registers.
Customer: replied 2 years ago.
Does this apply to every state? I have read articles that do not support your opinion.
Expert:  FiveStarLaw replied 2 years ago.
Yes it does apply in every State under the Uniform Commercial Code.
If you can point me to one of the articles that you read, I can point to the differences as I understand them between the article and your situation
Expert:  FiveStarLaw replied 2 years ago.

I see that you rated my service as "bad". This reflects very poorly on me. If you were rating the site or the effect of the law, please reconsider the rating as the rating reflects upon me and not the site or the law. If there is some portion of my answer that is unclear to you, please let me know and I will do my best to rectify it
Customer: replied 2 years ago.

Perhaps I didn't state enough details. The daughter recently took over the business and 2 months ago in a telephone conversation, the manufacturer told me my prices on Amazon were too low. An email followed stating that I must not sell below their MAP and a contract would follow. I complied with their request to raise my prices even though Amazon told me that I didn't have to.


 


I started selling their product on Amazon 5 years ago and recently they listed there own products, too. As far as I am able to determine, I am their only competition on the Internet with my web site and Amazon sales.


 


There has never been any problem until April when one of my orders wasn't shipped. It caused a lot of problems for me. I have always paid by credit card and have never returned anything including their shipping mistakes.


 


This involves interstate sales. The vendor is in CA where I believe MAP is illegal.

Expert:  FiveStarLaw replied 2 years ago.

The new information that you have posted bears little resemblance to your initial question. Please remember that I do not know your facts unless you tell me

It is still true that absent an agreement to the contrary, it is legal for a manufacturer to stop selling to a wholesale customer at any time and without a reason for discontinuing the sales. However it is not legal to discontinue sales based upon an illegal reason.

If you are able to prove that the reason for the discontinuation of sales is that your price was below the manufacturer MAP, you may have an action against the manufacturer.

The law is in a state of flux regarding the enforceability of MAPs. Here are 2 links that you may find helpful in understanding the current state of the law:

ht tp://www.pepperlaw.com/publications_article.aspx?ArticleKey=2099

http://www.tuckerellis.com/files/minimum_resale_price_maintenance_after_leegin_copy1.pdf

http://www.law.northwestern.edu/searlecenter/conference/international/session_6_pricing_distribution_internet.pdf



I think this is what you wanted to know. Please let me know if I have answered your question or whether you would like further information
FiveStarLaw, Attorney
Category: Business Law
Satisfied Customers: 36646
Experience: 25 years of experience helping people like you.
FiveStarLaw and 7 other Business Law Specialists are ready to help you
Customer: replied 2 years ago.

Does it matter that the promised MAP contract was never sent even though I said I would sign it if it seemed reasonable? Also, there isn't even a price list that states what the MAP prices are.


 


No complaints from the manufacturer were issued after I raised my prices. However, my orders were held and my inquiries about shipping were unanswered.


 


 


 


 

Expert:  FiveStarLaw replied 2 years ago.
Does it matter that the promised MAP contract was never sent even though I said I would sign it if it seemed reasonable? Also, there isn't even a price list that states what the MAP prices are.

Remembered that the manufacturer is not required to continue to sell to you. He just cannot stop selling based upon illegal reason. If you are able to prove that the reason for not selling to you is based upon the MAP, you may have an action against the manufacturer.



No complaints from the manufacturer were issued after I raised my prices. However, my orders were held and my inquiries about shipping were unanswered.
I understand.

The purpose of the site is to give you information so that you can help yourself. Your circumstances are complex– I do suggest that you retain local counsel. Here is a link to a free site that may assist you in locating competent legal counsel: www.Martindale.com

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Law Pro

    Attorney

    Satisfied Customers:

    1767
    20 years experience in business law - sole proprietor, partnership, and corporations
< Last | Next >
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Attorney

    Satisfied Customers:

    1767
    20 years experience in business law - sole proprietor, partnership, and corporations
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    1495
    Run my own successful business/contract law practice.
  • http://ww2.justanswer.com/uploads/DC/DCraneEsq/2012-8-14_14436_DCrane.64x64.jpg MShore Law's Avatar

    MShore Law

    Attorney

    Satisfied Customers:

    1233
    Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    1174
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/scottymacesq/2009-6-10_221523_small.jpg RGMacEsq's Avatar

    RGMacEsq

    Attorney

    Satisfied Customers:

    504
    Licensed Texas General Practice Attorney
  • http://ww2.justanswer.com/uploads/ohioatty/2009-1-22_185545_me.jpg J.Hazelbaker's Avatar

    J.Hazelbaker

    Attorney

    Satisfied Customers:

    393
    Experienced and trained in the area of business law.
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Attorney

    Satisfied Customers:

    373
    14 years practicing attorney, MBA
 
 
 

Related Business Law Questions

Chat Now With A Business Lawyer
FiveStarLaw
FiveStarLaw
Attorney
1174 Satisfied Customers
25 years of experience helping people like you.