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socrateaser, Attorney
Category: Business Law
Satisfied Customers: 38879
Experience:  Retired (mostly)
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Is it okay for a vendor to cut relationships with a retail

Customer Question

Is it okay for a vendor to cut relationships with a retail business for no other reason than the fact that they do not like the retail business owners? One of our vendors keeps picking a fight, making false accusations, and it seems like no matter how we respond, his intent is to make us look bad so that he can sever ties with us and open new accounts with other retail businesses in our immediate area? What legal protection (if any) do I have from this type of behavior?

Thank you
Submitted: 7 years ago.
Category: Business Law
Expert:  socrateaser replied 7 years ago.

If you have a written contract, then you could sue the vendor for breach of the implied covenant of good faith, and show that the vendor continuously tried to deprive you of the benefit of the bargain.


If you have no written contract, then you would have to prove that such an implied agreement for you to have exclusivity in your locale existed, and then prove breach of implied covenant. But, it would be incredibly difficult without something in writing.


Other than that, as long as the vendor does not act in a manner that reduces competition in the market for similar products, you have no recourse, based on your alleged facts.


Hope this helps.


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