Legal Question in Business Law in California

Price Changes

I work for a wholesaler/Distributor. One of our vendors had a price change starting 01/01/09. They are now applying the new price increase to orders that were from 2008 and were back ordered. Can they increase the price of backordered products?


Asked on 2/09/09, 1:24 pm

3 Answers from Attorneys
George Moschopoulos The Law Office of George Moschopoulos

Re: Price Changes

Generally, no they cannot. An attorney would have to review your contract to determine for sure. However, price is a material term and cannot be changed unless both parties agree or there is some mechanism which triggers a price increase in the contract.

You need to handle this with them sooner rather than later because if you accept delivery or do not object within a reasonable time, it may be deemed an acceptance of the new terms on your part.

Contact us if you would like help.

Best of Luck!

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Answered on 2/09/09, 1:37 pm
OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: Price Changes

Is intrastate commerce involved? The UCC may apply. Contact me directly.

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Answered on 2/10/09, 9:33 pm
Adam Telanoff Telanoff & Telanoff

Re: Price Changes

This is a more complicated question than it would appear to be on the surface. The place to start is to look at the terms of your agreement with the vendor. Are they in writing?

Did you pre-pay?

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Answered on 2/09/09, 9:57 pm


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