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entered into a vending licensing agreement with an organization.

i am licensed to sell...
entered into a vending licensing agreement with an organization. i am licensed to sell trademark goods. part of the agreement is that goods are only sold at approved events, one which is upcoming. the organization information indicates vendors can license for upcoming events. after paying for and receiving license, ordering goods for event and not hearing anything about vendor space I began communicating for months trying to get information about what to do next. finally, a week ago, they sent an email after I sent another email indicating I was coming and what did I need to do and shared with me that the spaces were limited and that space invitations were going to vendors who have seniority. this was the first time I heard this information about space being offered based upon seniority. I have acted in good faith, meeting the requirements for application and abiding by the rules and planning to attend the event. Now after my goods have been ordered and shipped based upon the assumption, that because I was licensed and it is noted that people wanted to participate in upcoming events, am I being told I may not have a space and the event begins JUly 11th.

Is this breach of implied good faith? If I had known in the beginning that space would be given based upon seniority of vendors, I may have chosen not to participate. No other options have been afforded to me (or other vendors for that matter.) Yet not only did the organization take the funds but in the contract and paperwork, nothing is noted to this fact. I contacted them on numerous occasions trying to get feedback. I cannot un-order my 18000 units of inventory.

Please advise if I have an recourse. Thanks Carol
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Answered in 3 minutes by:
7/1/2013
Tina
Tina, Lawyer
Category: Legal
Satisfied Customers: 33,167
Experience: JD, BBA Over 25 years legal and business experience.
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Hello and welcome.

My name is XXXXX XXXXX my goal is to provide you with excellent service today. I am very sorry to hear of your difficult situation. Before I can give you an accurate answer to your question, please provide the following additional information:

Is the organization you entered the vending contract with the same organization which is holding the event and from which you ordered the products for the event? Your agreement with them is silent about placement at these events based on seniority or that space may not be available?

I look forward to assisting you as soon as I have received this information. Thank you.

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Customer reply replied 4 years ago

Hi Tina


I ordered my products from China. I (with my sister) have invested over 100,000 dollars in participating in this event. I was not told about the seniority of invites to participate as a vendor until last Monday after I had been asking and asking about space. This morning, I went to the national office to see the person responsible for licensing and she was not in. The executive director got her on the phone and she told the director that she sent me an email this weekend but it bounced back. Mind you none of her other emails have bounced back. I gave my email along with my cousin's email. I was told I would receive an email. Nothing thus far. The executive director had indicated as well this morning that invites were being given based upon vendors being with them over the years. Never was this mentioned in any application paperwork and after I received the license. In addition, the organization is very strict about how vendors sell items with their trademarks and I have done everything expected of the organization.

I see. Thank you for clarifying the situation for me, Carol.

Yes, this seems to be a violation of the organizations implied duty of good faith and fair dealing in that they led you to believe you would be involved in the event such that you relied on their representations to your detriment and have now suffered damages.

The D.C. Court of Appeals recently stated:

We have held that “all contracts contain an implied duty of good faith and fair dealing[.]”  Allworth v. Howard Univ., 890 A.2d 194, 201 (D.C.2006) (internal citation omitted).   This duty means that “neither party shall do anything which will have the effect of destroying or injuring the right of the other party to receive the fruits of the contract.”  Id. (internal citation omitted).   In addition, a party to a contract may be liable for a breach of the duty of good faith and fair dealing if the party “evades the spirit of the contract, willfully renders imperfect performance, or interferes with performance by the other party[.]”  Paul v. Howard Univ., 754 A.2d 297, 310 (D.C.2000).

Here is a link to the case:

http://caselaw.findlaw.com/dc-court-of-appeals/1312630.html

Given the amount you have spent in reliance on your contact, I would retain a local contracts or business law attorney to represent you in this matter and seek reimbursement from the organization for the damages you have sustained.

I hope this helps clarify the situation for you. Please remember to rate my service once you have all the information you need so I will be compensated for my time from the deposit you posted with this website. If you have any other questions, please ask me – I’ll be happy to respond. Thank you!

Tina

Tina
Tina, Lawyer
Category: Legal
Satisfied Customers: 33,167
Experience: JD, BBA Over 25 years legal and business experience.
Verified
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Customer reply replied 4 years ago

Thank you Tina. I think what makes matters worse for me is that this is my sorority. They are emphatic about their rules about vendor guidelines. I just got a call from someone else who wanted to vend. She was told that some people got the email invite with an access code to apply for a table. The event begins July 11th. Why not tell me in the beginning this is how it will be run. NOTHING. I am incredibly frustrated and hurt. Thanks for clearing things up for me and I will take your advice and seek an attorney. Be well and peaceful. Carol

Hello again, Carol.

I can certainly understand your frustration and distress about this. They should have made the rules clear beforehand. I hope you are able to clear this up promptly and reach a settlement with the sorority.

I would like to thank you very much for your positive rating of my service even though you are experiencing such a difficult dilemma. It has been my pleasure to assist you and I hope you will ask for me should a future legal need arise.

If you receive a Customer Satisfaction Survey from JustAnswer, please consider scoring me a 9 or 10. It benefits my ability to assist you and other customers, and would be tremendously appreciated.

Thanks again and all the best to you.

Tina

Note: Please feel free to request me if you have future legal questions by typing your new question in the question box on my profile page. Here is a link to that page, which you can bookmark or add to your favorites: http://www.justanswer.com/law/expert-tina/. I look forward to hearing from you again should the need arise.

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