Legal Question in Business Law in Georgia
Restraint of Trade?
Our business is a retailer of officially licensed merchandise. Recently, one of the licensors told our manufacturer that they couldn't sell their products to us. They wanted all retailers to sign up as ''authorized'' retailers before they could purchase (even though we had been all along). So, we tried to get established as an ''authorized retailer'' through the licensor, however, we were denied because of our business name (I have this in writing through an email) as the sole reason (we had passed all of their other requirements). We are an established company selling products of other brands of the same nature, have a professional store.
Seeing that this is one of our best selling brands, and to change our company name at this point would be a very difficult process, we first wanted to question the legality of these actions. Can they tell a manufacturer not to sell to us - and, can they deny us based on our name alone?
I appreciate your help, thanks in advance.
3 Answers from Attorneys
Re: Restraint of Trade?
You do not have a general legal right to force someone to do business with you. It isn't "restraint of trade," in the legal sense, merely because one company chooses to not do business with another company. Conversely, they can't force you to sell their products if you choose to not do so.
Re: Restraint of Trade?
This is, as they say "above my pay grade".
I suggest that you contact the State Bar of Georgia and ask for a referral to an attorney specializing in the issues of franchising, licensing and intellectual property law, as well as unfair business practices.
Re: Restraint of Trade?
It is nearly impossible to advise you of your options without reviewing all the facts, circumstances and any documents. You should consult with a local attorney. I have an association with a group that deals with trade names and the like. If you would like to discuss, please feel free to give me a call.
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