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 socrateaser Your Own Question
socrateaser, Attorney
Category: Business Law
Satisfied Customers: 38910
Experience:  Retired (mostly)
Type Your Business Law Question Here...
socrateaser is online now
A new question is answered every 9 seconds

As a distributor of packaging goods I buy and resell to my

This answer was rated:

As a distributor of packaging goods I buy and resell to my customers. I was given a special price for a million caps that I marked up and quoted a customer. The supplier has come back after the fact and advised they wish to retract the special price which is better then the price list. I then find out that this same special price was given to another distributor clearly showing that the manufacturer wishes to keep my company from getting the business. Would this be considered price fixing or some type of illegal fair market practice?
This is a straight breach of contract if the manufacturer refuses to honor the price after you have relied on it in quoting a customer, and the customer accepts your offer.

Otherwise, while you could argue that the deal represents a violation of the Sherman Antitrust Act (exclusive dealing that tends to create a monopoly), it would be very difficult to prove, unless there are other distributors such as yourself and only one gets these deals. Then, you could make a reasonable argument that the manufacturer and its selected distributor is trying to drive all but one distributor out of the market and create a monopoly.

In my view, the better argument here is that (1) You were given a price; (2) you already have a deal with a customer; (3) retraction of the original price damages your profit margin; therefore the manufacturer must maintain the price or you will be forced to sue for the damages sustained by the manufacturer's retraction of the offer.

Hope this helps.

NOTICE: My goal here is to entertain while educating the public about the law. I hope my answer is useful and informative to you. During our conversation, the website may ask you to rate my answer. If you rate my answer lower than the middle rating, then the website retains your entire payment, and I receive nothing. It is entirely your choice as to how you rate my answer. However, because your payment to me is in the nature of a donation/gift, rather than as compensation for any services rendered, you are entitled to know how your rating affects the final distribution of your donation.

If you need to contact me again, please put my user id at the beginning of your question ("To Socrateaser"), and the system will send me an alert. Please Click the following link for IMPORTANT LEGAL INFORMATION. Thanks and best wishes!

socrateaser and 3 other Business Law Specialists are ready to help you