Legal Question in Business Law in California

Unfair Competition?

My company makes goods in China. Our competitor manufactures the same products in Mexico, Canada, and the U.S.. The primary users of these products are government agencies. However, the rival is trying to create fear in our customers by calling into question the quality of Chinese made products (although tests show that our products exceed all government specifications). Now, one county has started to specify on bid sheets that products must be manufactured in North America, which effectively locks us out from bidding. Is it legal for the county to require this when our products pass all state and county standards?


Asked on 7/15/07, 11:34 pm

3 Answers from Attorneys

Bryan Becker Stutz Artiano Shinoff & Holtz

Re: Unfair Competition?

The public entity bidding process can be tricky as local governments can sometimes state unique terms such as compliance with a local living wage or a preference for a "local" firm. Your situation will require further investigation as to what basis the local government would have to require North American products. (it may be more than just bias.)

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Answered on 7/16/07, 6:10 pm
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Unfair Competition?

It is a delicious irony that even a corrupt totalitarian state such as the People's Republic of China can be entitled to equal protection under the U.S. legal system. Your company should challenge the bidding specifications, as there would appear to be no rational basis for the requirement that the products in question be manufactured in North America.

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Answered on 7/15/07, 11:43 pm
Johm Smith tom's

Re: Unfair Competition?

These guys are right, an attorney will have to go over the facts and legal limits placed on the county to know if they have exceeded their rights. The attorney can also look into whether your competition is violating any laws or your rights.

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Answered on 7/17/07, 12:23 pm


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