Legal Question in Business Law in California
unfair business practices
I had a mailing equipment dealership. In 1999 the manufacturer cancelled us mid-contract year without cause. We did not violate our contract, we were current on our bill and there was no quota so we were ok there. Their reason ''we think we can get better coverage by opening a branch office''. When you sell a mailing machine, there is an ongoing monthly rental commission paid to the dealer. They paid us nothing when cancelling us and refused to ship any supplies, parts etc from the date of the phone call informing us of the cancellation. Now the branch is gone and a new dealer in the same location is selling there products. Doesn't this sound unfair to you? They cancel us, open their branch office, then turn around and give it or sell it to someone else.
4 Answers from Attorneys
Re: unfair business practices
If the violated the contract with you, then you can sue them for damages.
Re: unfair business practices
You say that the dealership was cancelled "mid-contract year," butyou have not disclosed the contract. It will govern everything in your relationship. It does sound from your description that the other party did not have a right to cancel you and pick up another dealer "mid-contract," but I'd really have to read your contract before I could give you a definitive opinion as to your rights.
Re: unfair business practices
Everything depends on what is in the contract. If they violated the terms of the contract, you could sue for damages, but I would need to see the contract in order to provide an answer.
Re: unfair business practices
You have a breach of contract action for losses due to the cancellation. Whether or not you have further causes of action for unfair business pratices needs more research. Please call me directly at (619) 222-3504.
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