Legal Question in Business Law in New York

food service

I am a meat and cheese provider to deli in manhattan. I have a potential customer who wants me to pay him $40,000+ up front to get his account. In return he will guarantee me a minimum of $2,000 in weekly sales. I have never attempted a contract of this magnitude. Do any of your lawyers have any experience for this type of transaction?


Asked on 6/02/07, 1:54 pm

4 Answers from Attorneys

Barry Kozyra Kozyra & Hartz, LLC

Re: food service

This is a distribution type arrangement which requires a carefully crafted contract that allows for you to know exactly what to expect - both positive and negative.

Care must also be taken to avoid an unlawful restraint of trade which could get you into trouble. You should contact and meet with an attorney as soon as possible to explore your options.

We have experience in dealing with food distribution arrangements. If you are interested contact us for a consultation.

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Answered on 6/02/07, 2:24 pm
Ronald Cappuccio Ronald J. Cappuccio, J.D., LL.M.(Tax)

Re: food service

This sounds like FRAUD. Why are you paying $40k? Some deistribution arrangements (for example soft drinks) have the distributor supply a refrigerator. This sounds like a scam to get money from you to run the business. Bankruptcy, tax liens and other creditors could all be in front of you and you will LOSE YOUR MONEY!

Do not give them any money!

Ron Cappuccio

www.businessesq.com

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Answered on 6/02/07, 3:41 pm
Kristen Browde Browde Law, P.C.

Re: food service

I think Mr. Cappuccio's take on this is the better of the two already posted. I'd only add that this type of arrangement may be an illegal kickback, and that you should - in my view - not become involved with this customer.

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Answered on 6/02/07, 4:07 pm
Johm Smith tom's

Re: food service

This is not an acceptable business practice that you would want your customers to know you are involved in, even if it did go as proposed. You lay down with dogs; you come up with fleas, and your reputation is all you have. So you don't want to be considered a crook or a fool and one of those two look most likely in this scenario.

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Answered on 6/02/07, 5:52 pm


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