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Lucy, Esq.
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If a manufacturer wants to not sell a current good paying retailer,

Resolved Question:

If a manufacturer wants to not sell a current good paying retailer, but wants to drop this retailer to sell another retailer down the block is that legal?
Submitted: 1 year ago via Cornell Legal Info Institute.
Category: Legal
Expert:  Lucy, Esq. replied 1 year ago.
Hi,

My name is XXXXX XXXXX I'd be happy to answer your questions today.

Does the retailer have any sort of contract with the manufacturer that requires the manufacturer to do business with them for a specified term? Does that contract say anything about exclusivity?
Customer: replied 1 year ago.

There are no paper contracts between the retailer and the manufacturer, only the fact that the mfgr. has been doing business over a long period of time and the retailer has a good credit rating.


The question is can a mfgr. "dump" the first retailer to sell the second one on the next block.

Expert:  Lucy, Esq. replied 1 year ago.
Unfortunately, yes, he can. Absent a contract that states that the parties will continue to do business together for a specified amount of time, any business relationship is at will. Either party is free, at any time, to choose to cease doing business and look for another, more advantageous relationship. As a matter of public policy, courts will not force two people to continue to interact with each other when one of them has exhibited an intent to discontinue the relationship.

Anti-Trust law refers to thinks like price fixing or agreements to discourage or prevent competition. Allowing a manufacturer to leave one retailer and work with another actually encourages competition and is therefore allowed.

I apologize that this was probably not the Answer you were hoping to receive. However, it would be unfair to you and unprofessional of me were I to provide you with anything less than truthful and honest information. I hope you understand.

Good luck.
Lucy, Esq., Attorney
Category: Legal
Satisfied Customers: 19922
Experience: Lawyer
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