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 MShore Law Your Own Question
MShore Law
MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25285
Experience:  Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
Type Your Business Law Question Here...
MShore Law is online now
A new question is answered every 9 seconds

Two years ago, I became a distributor for a line of dog food

This answer was rated:

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.
MShore Law and other Business Law Specialists are ready to help you