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MDLaw
MDLaw, Attorney
Category: Business Law
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Experience:  Experience in business law, contract law and related matters.
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Hello- this is the same issue but I have added some details

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Hello- this is the same issue but I have added some details that may make a difference.

- Z LIGHTS AND FURNITURE is a small family owned furniture retail store in business since 1993. Z is a retailer of Calligaris USA products (Beds, Dining Sets & Stools) for about 20 years.

- Calligaris closed Z account in a letter dated July 2nd, 2012 (effective July 30th) giving Z less than amonth to complete any bending orders. No reason whatso ever was stated in the letter. Aapparently Calligaris believes it has no contractual obligations to Z . Mr. Ghassan Saoud President of Z was told by Mr. Ken Loh (Sales Representative of Calligaris) Calligaris closed the account because it decided to do business with a new potentially larger retailer in Washington DC and wants to channel the business through the new store.

Z believes it has a contractual relationship with Calligaris and not just occasional orders placed with them because of :

Calligaris requested Z to promote and advertise its products. Z displayed the product in its Alexandria & Washington DC stores and online at zfurniture.com. Calligaris insisted on a minimum number of items to be displayed in the Z store at all times (Beds & Dining Sets) and occasionally inspected & enforced the policy. Confirming Z Retailer status and its contractual obligations to Calligaris.
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- Calligaris designed its products display in the Z store.
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- Z Also spent thousands of Dollars on advertising Calligaris brand & products in print and online at Google, Yahoo & Bing. All this with Calligaris urging & knowledge.

- Calligaris web site www.calligaris .it listed Z as a trusted retailer of its products.

- Calligaris enforced its MAP policy (Minimum Advertised Price) on Z, again confirming Z Retailer status and its contractual obligations to Calligaris.

- Z staff received Factory training on displaying & selling the Calligaris line, again confirming Z Retailer status and its contractual obligations to Calligaris.

- Z is a small family owned business and had agreed to invest its limited resources on promoting the Calligaris brand & products with the explicit understanding it will be able to sell Calligaris products.

- Calligaris terminated Z account giving it less than 4 weeks even though it may take up to a year or more to realize the benefit of advertising Z had spent in term of received business.

- Z had lost and continues to lose Thousands of dollars in business because of the unjustified termination action by Calligaris.

- Z was forced to close its Washington DC store (open for 18 years) at the end of February 2013 partially as a result of losing the Calligaris business.
Submitted: 1 year ago.
Category: Business Law
Expert:  MDLaw replied 1 year ago.
Hello and thank you for using the Just Answer website. I look forward to assisting you this morning.

May I ask what your question is? In other words, what legal information are you seeking? As soon as I know that, I can further assist you. Thank you.
Customer: replied 1 year ago.

Hello- I want to know if I have any legal rights and a good case to sue the factory Calligaris for closing my account in this fashion


 


Regards


 


 

Expert:  MDLaw replied 1 year ago.
Just to be clear, you would be Z Lights?

Did you have a written contract with Calligaris or was everything merely verbal?

Customer: replied 1 year ago.

I own Z Lights. All verbal

Expert:  MDLaw replied 1 year ago.
Unfortunately, Gus, if you had no written contract, meaning that you had no written guarantee that they would continue to sell to you for X number of years or in perpetuity, then they have the legal right to end the business relationship. Unless there is a written contract, a business can choose whom to sell to or not sell to. The fact that you have a history with them does not change that legal fact, regrettably.

Now, you stated that you had an agreement that you would sell their products. However, the issue becomes whether or not you had an agreement to sell their products until X date or in perpetuity. If you had such a verbal agreement, then you have the legal right to pursue them in court. However, to do this, you would need some type of evidence showing that there was this type of agreement or implied agreement. Otherwise, it just comes down to your word against their word and legal cases are very costly, especially in the MD/DC/VA area. (I used to live and practice in the Dupont Circle area).

Please let me know if this has answered your question or whether you need any additional information. Thank you for allowing me to assist you and again, please do reply if you need more from me.

Customer: replied 1 year ago.

Does the fact that Calligaris required me to display a minimum number of items in the showroom which I did mean anything or imply a contract ?

Expert:  MDLaw replied 1 year ago.
It can be evidence of the fact that you had an agreement to sell their items in your store but it is not evidence that you had an agreement to sell their items in your store until X date or in perpetuity and that's what the issue comes down to. Your company and Calligaris definitely had an agreement/contract that you would sell their products in your store. The question that you have, however, and what the issue is - is whether or not you had an agreement to sell their items forever and it does not appear from what you have told me that there was such an agreement.

MDLaw, Attorney
Category: Business Law
Satisfied Customers: 5842
Experience: Experience in business law, contract law and related matters.
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