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MShore Law
MShore Law, Attorney
Category: Business Law
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Experience:  Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
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Two years ago, I became a distributor for a line of dog food

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Two years ago, I became a distributor for a line of dog food supplements which are now housed in five retail locations. To become a distributor, I purchased over $10,000 worth of product. At that time, I received a certificate of liability insurance naming me on the certificate. Earlier this year, one of the company principals was found guilty and went to jail for making false claims about the product on the bottle. I discovered that the company phone was no longer in service, their website was down and emails were not responded to. I then contacted the company's liability insurance provider who informed me that the company that manufactured the products has gone out of business.

Question - Given that the company is out of business and there is no longer any liability protection, should I pull the products from the retail locations? Should I also trash the product inventory that I have in storage? Or, could I attempt to sell the product soem other way.
Thank you for the post, I am happy to assist you by answering your questions. Yes, you should pull the products. The reason you should pull the products is that as the distributor you are within the the chain of liability should the products prove harmful to dogs and because the manufacturing company is out of business, you are a prime target for suit. You can attempt to sell the products to another merchant but make sure you do so with a liability waiver whereby the merchant(s) acknowledges and agrees not to hold you liable and indemnify you should a buyer later sue the merchant. Please let me know if you need additional guidance.
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