Legal Question in Business Law in California

business practices

if--name removed--have been ordering

from a wholesale

company merchandise for my store, can

they suddenly stop selling to me

without notice? is this a discriminatory

business practice?


Asked on 3/19/09, 3:57 pm

2 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: business practices

Possibly, but you haven't given us nearly enough facts to form an opinion.

Generally speaking, if the offended party can show that he/she/it was refused service, not allowed to purchase, denied admission, not hired (or whatever) because he/she/it was a member of a protected class (as defined in U.S. Supreme Court decisions), then a suit alleging discrimination can proceed and upon adequate proof, the offended party may win.

However, unless the plaintiff can tie the denial of service (or whatever) to discrimination based upon plaintiff belonging to a protected class based upon race, religion, national origin, sexual preference, or in some cases age (and I may have omitted a protected class from my list), the plaintiff's case is probably going nowhere.

In general, wholesalers, manufacturers, etc. can choose their clientele, and can cut anyone off with little prior notice for any good reason, or for no reason at all.

Among the reasons that might result in a cut-off are failure to pay promptly, low volume of purchases, shortage of particular items, a change in the lines being emphasized by the wholesaler, high return rates, inability to provide requested support services, low profitability (or losses) on that account, and on and on.

Read more
Answered on 3/19/09, 5:12 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: business practices

Possibly, but you haven't given us nearly enough facts to form an opinion.

Generally speaking, if the offended party can show that he/she/it was refused service, not allowed to purchase, denied admission, not hired (or whatever) because he/she/it was a member of a protected class (as defined in U.S. Supreme Court decisions), then a suit alleging discrimination can proceed and upon adequate proof, the offended party may win.

However, unless the plaintiff can tie the denial of service (or whatever) to discrimination based upon plaintiff belonging to a protected class based upon race, religion, national origin, sexual preference, or in some cases age (and I may have omitted a protected class from my list), the plaintiff's case is probably going nowhere.

In general, wholesalers, manufacturers, etc. can choose their clientele, and can cut anyone off with little prior notice for any good reason, or for no reason at all.

Among the reasons that might result in a cut-off are failure to pay promptly, low volume of purchases, shortage of particular items, a change in the lines being emphasized by the wholesaler, high return rates, inability to provide requested support services, low profitability (or losses) on that account, and on and on.

Read more
Answered on 3/19/09, 5:12 pm


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