Legal Question in Business Law in California

Can I sue wholesaler for closing my account? I need a legal advice on an issue I have with my wholesaler. He closed my account without notifying me and refuses to tell why it was closed. When I opened that account I signed an agreement with him and one of the conditions for me to open it was that I purchase a certain amount of his merchandise. Even though it was not profitable at the time, I had a long term business plan in mind and decided to go with it, I invested resources in his merchandise and in promoting it. However by losing supply it is pretty much useless now. Also I still have open orders which I think will be canceled so losses again.
So now financially I will encounter losses and would like to know is there anything I can do?

Asked on 11/16/13, 3:48 am

2 Answers from Attorneys

Carl Starrett Law Offices of Carl H. Starrett II

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You need to take the contract to a local attorney for review to determine if you have any legal remedies. With the very few facts that you have provided, it is impossible to tell if you have any legal recourse.

Let's say you sign a one-year lease on an apartment. When the lease is up maybe you sign another lease and then another. After 3 years, the landlord gets you notice that he won't sign a new lease. Unless there is a lease term or a local law that gives you the right to a renewal, you need to move out. There might be a contract clause that gives your wholesaler a complete out...or not. That's why you need to see an attorney to review the agreement.

Answered on 11/17/13, 6:29 am

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