Legal Question in Business Law in New Jersey

Manufacturer no longer will conduct business with us

We run a web site and have many different suppliers and distributors. We have been buying products directly from the manufacturer (namely Banks Exhaust - www.bankspower.com) for at least a year, selling quite a lot of their products. We have had good credit with them, but they have had a vendetta against us for quite some time, reason unknown. Now, they refuse to take any orders from us AND have been calling our customers telling them ''we will not honor our warranty if you buy from them''!. Can they do this!??!?


Asked on 7/29/04, 4:45 pm

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: Manufacturer no longer will conduct business with us

In a brief word - maybe. Traditionally they cannot do this. You need to explore why they are refusing to sell to you. If you are underselling them and they have the right to set the retail prices, they can terminate you. This frequently happens when a manufacturer tries to maintain a retail level. Perhaps the problem is not with you, but with your distributors, and you are getting the flack. Do you have any written agreements with them? If so, what do they provide? If none, there is no law that would prevent them from refusing to sell you, although if done arbitrarily, you might have a claim for malicious interference with your business. More information is necessary to give you a better answer.

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Answered on 7/30/04, 2:44 pm


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