Legal Question in Intellectual Property in California
Resale Price Maintenance Dealer Termination
If you legally terminate a Dealer for failing to abide by suggested prices set forth in a Dealer Agreement (No coercion just a letter stating ''You are terminated'') is there some time in the future when that Dealer can reapply to be a Dealer or is the Manufacturer prevented from ever selling to that Dealer again?
1 Answer from Attorneys
Re: Resale Price Maintenance Dealer Termination
As far as I know or can tell from the question, these are just matters of private policy and opinion and not subject to any statutory limits.
It's like being fired from a job. If you are an at-will employee, the employer can fire you at any time for a good reason, or for no reason at all, but not for a bad reason. Afterward, nothing prevents you (except perhaps your common sense) from re-applying to the same employer the following morning.
Similarly, a terminated reseller can re-apply at any time. However, the dealer and the manufacturer should carefully examine their suitability for one another.
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