Legal Question in Business Law in California
Price fixing
I am a printing broker who sells to retail. I have a vendor who is now trying to sell directly to my customers for less than he was selling to me. Can he legally do this?
1 Answer from Attorneys
Re: Price fixing
The question you ask is a difficult one because the answer is driven by both facts and law. Generally, people are free to compete, but subject to certain restrictions such as unfair competition laws (e.g., selling at below cost to capture a market by driving the competition out of business) and laws against using another's trade secret information (e.g., a competitor's customer list or price list if such lists meet the definitions of trade secrets). Accordingly, I cannot give you a definite answer based solely on information that a vendor is now selling goods for less than they were being sold to you.
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