Legal Question in Business Law in Colorado

Business agreements

For two previous years I had a ''vendor agreement '' with a national company. I this agreement I discounted invoice 1% net 15 and a 2% rebate on gross sales at the end of the year. In return I was listed in their computer system as a preferreed vendor. I declined to renew and was told in an email that if I did not renew, there would be comments put in their system telling personel not to use our company and listing of my competitors who should be called first. Our information will not be removed, the status would be changed to non-preferred. We have voilated no term of the agreement. We are a small company and the $5,000 we owe them from last your is too expensive for us to pay in the future. Is this a legal form of extortion? We are in Colorado and this other company is in Minnesota.


Asked on 2/13/07, 1:56 pm

1 Answer from Attorneys
Robert Murillo Pivotal Legal Ltd.

Re: Business agreements

Morning,

This does not sound like extortion, but merely policy. You had an agreement as a preferred vendor. If you do not continue with that agreement they are free to revise your company's treatment as to their clients. Review the agreement, but this non-preferred treatment is fairly standard.

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Answered on 2/15/07, 9:02 am


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